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Show - - - - V Farm Loan Man Explains Plan On 'Scale Down' Reduction or "scale-down" of farmers' obligations rnas become an important subject for discus-j sion in connection with farm finance fin-ance relief being administered under un-der the emergency farm mortgage! act of May 12, 1933. The necessity for the scale-down scale-down in many cases was explained explain-ed by William H. Woolf, agent of land bank commissioner for the States of California, Arizona, Nevada Nev-ada and Utah, who said that a study of applications shows t'hat many of the farmers applying for loans are in such bad financial position that they are virtually insolvent in-solvent and that there must be a scaling down on the part of the farmers, creditors to a point w'here the farmers wilfl have an equity of at least 2o per cent of the value, of the farm property before the Agent of the land toank commissioner, commis-sioner, can make a loan. Agreement Necessary "I want to state clearly," said Mr. Woolf, "that the Commissioner's Commission-er's agent is neither a court nor a mediator between the farmers and their creditors in effecting these scale-downs. The conditions under which the commissioner loans may be made are clearly established and it is entirely up to the farmer and his creditors to arrive at an agreement that witl meet established conditions if a loan is to be made. "Creditors should observe that it is to their advantage to allow a reduction of obligations in cases where loans could not otherwise be allowed for if a scale-down will enable a Loan to be passed it usually us-ually means that there will be cas'h available for the creditor that could not be obtained from other sources. "The law under which the farm credit administration and the land bank commissioner function has designed what is a farm and who is a farmer and it is intended that agricultural relief derived from commissioner Coans shall be ex- tended to those who come under the classification of farmers, as defined in the law. If you desire a loan on property which is used, for non-agricultural purposes your 1 ' application should be filed with ' one of the relief agecies other than the land bank commissioner. "Loans by the land bank commissioner com-missioner may be made up to $5,000 to one person and may be made for as much as 75 per cent of the appraised value of the real and personali property of the applicant. ap-plicant. "The appraised value is deter-1 mined after an appraiser desingn-: ated by the land 'bank commission- ; er has visited the property. Appli- j cants should be careful not to over-value their property at the time of filling out applications, for no loan can be made for more than 75 per cent of the fair normal nor-mal value and if loans are requested request-ed on the basis of over-valuation it will be necessary to figure out some way to reduce the amount of the request if loan is to be granted." |