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Show FEDERAL LOANS MADE CLEAR Anent the establishment of the Gunnison Valley National Farm Loan association many inquiries have been made regarding the regulations, terms, objects, etc., by prospective borrowers and for their benefit the News is reproducing the plans as mapped out by the Federal Land Bank officials, as follows: Who May Borrow. Loans are made to actual farmers only and on farms of a size and of sufficient production pro-duction to maintain the family of the borrower and also provide sufficient income to meet the semi-annual payment pay-ment of the loan. Amount. The amount that may be borrowed on properties is 50 per cent of the appraised value of the land, plus 2 0 per cent of the permanent perma-nent insurable improvements; and to arrive at this value the property must be twice appraised, first by the Association Loan Committee and then by a Federal Land Bank Appraiser. Ap-praiser. No loan may exceed $10,-000.00. $10,-000.00. Time. The time a loan may run is set by the applicant (in most cases) and may be for not less than five years nor more than thirty-five years. Only regular payments may be made during the first five years, but after that time the borrower is permitted to pay off his loan as fast as he may desire; but no loan can run for a longer time than that mentioned men-tioned by the borrower in his application. appli-cation. Purposes. The Federal Land Bank requires a "first" mortgage; and the money may be used in various vari-ous ways, but for useful purposes only', and the purposes for which the money is to be used must be clearly stated in the application, and same of the purposes are: To purchase land for agricultural purposes; removing re-moving incumbrances against the properly; providing improvements, such as buildings, fences, etc.; developing de-veloping water for irrigation; purchase pur-chase of livestock, implements, fertilizer, fert-ilizer, etc. Expenses. There are some necessary neces-sary expenses connected with carrying carry-ing a loan through, but these expenses expens-es are no source of profit to either the Land Bank or the Association These charges will be explained to you when you file your application with the Secretary of your Association. Associa-tion. The Land Bank also makes a moderate charge for legal expenses connected with drawing the papers, examining titles, etc. The applicant must, of course, take care of any title or recording charges. Stock. Each applicant is required to subscribe for stock amounting to 5 per cent of the loan, but on this stock he will receive any dividends declared by his Association, and the stock is used to make final installment install-ment payment on his loan. Payments. Payments are made semi-annually and in addition to the interest a small part of the principal is also paid in such a way that at the end of the term both interest and principal have been paid in full. Application blanks and all required requir-ed information will be- furnished by Secretary-Treasurer E. H. Bardsley, or President Chris A. Peterson of Centerfield, of the local organization or by the Federal Land Bank of Berkeley, Calif. |
