MCA Chapter 15

in effect

Miss. Code Ann. § 81-15-1 Title.

This chapter shall be known as the “Mississippi Rural Credit Law.”

Miss. Code Ann. § 81-15-3 Purpose.

The purpose of this chapter is to promote the welfare of agriculture and to provide ways and means by which the credit facilities of the Federal Intermediate Credit Bank, now established at New Orleans, Louisiana, may be available to the agricultural and live stock interests of this state.

Miss. Code Ann. § 81-15-5 Definition of term.

The word “organization” as used herein shall be construed to mean “agricultural credit corporation” or “agricultural credit cooperative association.”

Miss. Code Ann. § 81-15-7 Number of incorporators required; general provisions.

Five or more natural persons may unite to form an agricultural credit corporation, the capital stock of which shall be paid in cash and shall not be for less amount than $10,000.00. Any one or more state banks, any one or more national banks, or any one or more state and national banks may form, or unite to form, an agricultural credit corporation under the provisions hereof as a separate and distinct crediting institution. The capital stock of any such corporation shall not be for a less amount than $10,000.00, which must be paid up in cash. Any bank desiring to form an agricultural credit corporation, or any bank desiring to subscribe to stock in any agricultural credit corporation formed under the provisions hereof is hereby authorized and empowered to subscribe for any such stock, using any money that may be available, and not required by the banking law to be set aside for surplus account, to pay therefor; and for the same purpose, any bank organized under the laws of Mississippi is hereby authorized and empowered to borrow money. No organization formed under the provisions hereof shall be subject to the control, management, or supervision of the department of bank supervision. The directors of any national farm loan association chartered under the provisions of the Federal Farm Loan Act and doing business in this state may organize an agricultural credit cooperative association on an accumulative capital stock plan similar to the method provided for national farm loan associations in the Federal Farm Loan Act, and do business with the members of said national farm loan association, or with other qualified persons. The directors of said association shall hold office until the first annual meeting, when the directors shall be elected by the members from among their number. Ten or more persons engaged in producing, or producing and marketing, staple agricultural products, or live stock, may unite to form an agricultural credit cooperative association, with or without capital stock, and, if with capital stock, either on the paid up cash plan or on an accumulative plan, said capital stock increasing with and in the proportion as its loans increase, as provided by the bylaws. Any agricultural credit cooperative association organized hereunder may provide that capital stock shall be paid in cash or that it may be payable out of the loan when made by said association to a member.

Miss. Code Ann. § 81-15-9 Articles and bylaws subscribed to.

Those desiring to organize hereunder shall subscribe to, and duly acknowledge, articles of association and bylaws. The articles of association shall set forth the name of the organization which shall include the words “agricultural credit”; the principal place of business; the term of years the organization is to exist; the name and addresses of the persons who are to act as directors and officers until the first annual meeting; and when the organization is one with capital stock, the amount of capital stock and the par value of the shares which shall not be less than $5.00 each. The bylaws shall specify the powers of the organization, the powers and duties of the directors, the powers and duties of the respective officers, the manner and method of conducting the business of said organization and all rules and regulations that may be necessary for the proper management of said organization. The bylaws cannot be changed except as hereinafter provided. The bylaws shall be binding on such organization, the members and the stockholders thereof, and on all with whom such organization does business, and shall have the full force and effect of law. The articles of association and bylaws shall be subscribed to and acknowledged in triplicate, and submitted to the Federal Intermediate Credit Bank of New Orleans, Louisiana, for approval. When said bank approves such articles of association and bylaws and attests thereto, said articles of association and said bylaws shall be immediately forwarded to the secretary of state, with the fee for recording and certifying same as provided for in the chapter on corporations, if an agricultural credit corporation, and with a fee of five dollars in lieu of the above fee if an agricultural credit cooperative association. Said articles of association shall thereupon be examined by the Attorney-General and be submitted to the governor for his approval or disapproval as in the case of other domestic corporations, except that no publication and proof thereof shall be first required. When a copy of said articles shall have been approved by the governor and returned to the secretary of state for record, the secretary of state shall record same as now provided by law and shall also forward a certified copy of said articles of association and bylaws to be recorded as required by § 189 of the Constitution, in the office of the chancery clerk of the county in which the principal office or place of business be located. After approval and recordation as set out above, said organization shall have the power to do business.

Miss. Code Ann. § 81-15-11 Amendment of bylaws.

The bylaws of any organization formed hereunder may be amended by a majority vote of the stock held by those present at any meeting at which a quorum attends, the notice of which meeting shall have been given in accordance with the bylaws and shall have stated the purport of the proposed amendment and the intention to bring it up for consideration. Such amendment shall not become effective until it has been approved by the Federal Intermediate Credit Bank, and a copy recorded in the office of the chancery clerk of the county in which such organization has its domicile.

Miss. Code Ann. § 81-15-13 Organizations may discount or sell paper to Federal Intermediate Credit Bank.

Agricultural credit corporations and agricultural credit cooperative associations organized hereunder shall have power to discount with, or sell to the Federal Intermediate Credit Bank of New Orleans, Louisiana, any note, draft, bill of exchange, debenture, or other obligation, the proceeds of which have been advanced or used in the first instance for any agricultural purpose, or for the raising, breeding, fattening, or marketing of live stock, provided the amount of such paper added to the aggregate liabilities of such corporation or association does not exceed ten times the paid in and unimpaired capital and surplus of such corporation or association.

Miss. Code Ann. § 81-15-15 Organizations may borrow money from Federal Intermediate Credit Bank.

Any agricultural credit cooperative association organized hereunder shall have power, and is hereby authorized to borrow money from said Federal Intermediate Credit Bank on its notes or like instruments of indebtedness, when such notes or like instruments of indebtedness are secured by warehouse receipts or shipping documents covering such products, and in the case of live stock by mortgages on the same. No money thus borrowed shall exceed seventy-five percent of the market value of the products covered by said warehouse receipts or shipping documents, or of the live stock covered by said mortgages.

Miss. Code Ann. § 81-15-17 Discount of note or other obligation to be approved; when interest above eight percent permitted.

No organization hereby authorized shall, without the approval of the Federal Farm Loan Board, discount any note or other obligation, upon which the original borrower has been charged a rate of interest exceeding by more than one and one-half percent per annum the discount rate of said Federal Intermediate Credit Bank at the time the loan was made. But any organization hereby authorized may charge the original borrower a rate of interest equal to the current discount rate of said Federal Intermediate Credit Bank plus such excess as may be approved by the Federal Farm Loan Board, and if such rate shall amount to more than eight percent per annum the same shall not invite any penalty, nor constitute a violation of any interest or usury law of this state.

Miss. Code Ann. § 81-15-19 Limit of capital stock to be used for certain purposes.

No organization provided for herein shall have power to use or invest more than twenty percent of its capital stock for organization, current expenses, rent, personal or real property necessary for its use in conducting its business, or for providing warehouses or warehouse facilities.

Miss. Code Ann. § 81-15-21 Officers, directors and stockholders not to be liable.

No officer, director, nor stockholder of any organization doing business hereunder shall be individually or personally liable for the debts of said association or corporation.

Miss. Code Ann. § 81-15-23 Powers of corporation.

Organizations provided for hereunder shall have all the usual powers of corporations, and to sue and be sued both in law and in equity.

Miss. Code Ann. § 81-15-25 May provide warehouses.

Any organization herein provided for may acquire, purchase, own, or lease, and control and operate suitable warehouses for the safe storing of such agricultural products as may be produced by its borrowers, or by its members; and whenever it is deemed expedient to utilize the United States Warehouse Act, said organization shall have the power to do any and all things necessary to enable it to comply with the provisions of said act of congress. Any exemptions under any and all existing laws applying to agricultural products in the possession or under the control of the individual producer shall apply similarly and completely to such products delivered by its farmer members in the possession or under the control of any organization provided for herein.

Miss. Code Ann. § 81-15-27 May contract with warehouse.

Any organization herein provided for shall have power to contract with any existent warehouse, whether under control of the United States Warehouse Act or whether under the control of any law of Mississippi for storage therein of agricultural products produced by borrowers or members.

Miss. Code Ann. § 81-15-29 Money loaned exempt.

All money loaned by any organization provided for herein shall be exempt from taxation.

Miss. Code Ann. § 81-15-31 Amount of capital stock necessary for certain powers.

Any corporation, or cooperative association, organized under the laws of this state, having paid up capital of $10,000.00, or more, and in the business of making advances for agricultural purposes shall have power to do business hereunder by amending its charter and by submitting its articles of association and by-laws, attested by its proper officer, to the Federal Intermediate Credit Bank, New Orleans, Louisiana, for approval, and by recording an approved copy of the same as required above and by complying with the provisions above.