Show 94 FARM A LOAN IAN al ACT ta 11 II how t tahe farmers tiff may take advantage adv tg of it by bir frank R wilson federal loan bu reau washington 11 C only farmers or prospective farmers who wish to borrow money may join the tha national farm loan associations er provided under the federal farm loan act it takes ten tea or more to make tip lip one of these associations if n tanner former wishes to borrow he should find out it if such an association has been formed in his community if it has he should make application to the secretary treasurer tor for membership if no association has been formed he should attempt to get ten or more farmers who wish to borrow to meet for the purpose of organizing the process of organization Is very simple one of the members should write to the federal farm loan board washington D C for blank articles of association when they have been received a meeting of the prospective borrowers should be called and these articles of association should be adopted signed and acknowledged by each member each member will indicate the amount he wishes to borrow and the valur and description of the land he fisli s to use as security this association elects five or more directors and these directors th CIA elect a president a vice president a secretary treasurer and a loan corn com cittee of three members tills this is its as far as the association can go 90 until after the federal land bank of that district Is established then upon application the federal land bank nill bill furnish the local association with a blank application for charter which should be filled out ibid nd filed with tho the federal land bank along with the or ar nicles ol of association lands of members valued these documents should be accompanied by a written unanimous report of the loan committee placing a valuation on the lands of each of th the e members then the appraiser of the federal land bank will come to inspect the lands of the members find and 0 K X or reject the valuation prepared by the tha loan committee no one former fanner may borrow more than nor less than no national farm loan association may start with less than of loans each member joining the local association must b buy uy stock in the association equal to 5 per cent of the amount he be borrows if he borrows 1000 he will get in cash and a cei certificate of stock for 50 or he may make Ms his loan 1050 and thus have a net lon ion of 1000 taking as long a tins to repay the 50 invested in stock as ou on the thousand borrowed this investment Is for the purpose of providing the Inc increasing reusing capital of the federal ind lind L bank and the local association invests it in the land bank stock the borrower will get his money back when he pays off his mortgages and will get what dividends it earns while it Is invested why they are grouped now what is the object of requiring the borrowers to thus group themselves into loan associations primarily that the loan associations may eventually own the tha federal land banks this Is a operative cooperative co banking system and machinery must be provided tor for the government of the banks each of the local loan associations has a voe vole in the election of the directors in one of the federal land banks bank s the loan committee provided by the local association Is the agency tor for the valuation of the lands the board of dl of if the local association admits or rejects new members according to their wishes but most important of all since this system is operative cooperative co the borrowers must provide the money for the increasing capital of the bank and they do this by investing in the local associations loans made under tills this system may not exceed 50 per cent of the aj appraised value of the land used as security and 20 per cent of the appraised value of the permanent insured improvements thereon non land owners may become members of tin nn association by indicating la in their application what land they expect to come into possession of and against which the mortgage will he ha placed |