OCR Text |
Show Mineral Property . Involved In Loans The value of farm property may be affected for loan purposes by the absence ab-sence of mineral rights; but if there is remaining value to the property on which loans may be based, such value will be considered by Federal Land banks in making land bank commissioner's commis-sioner's loans. This announcement has been received receiv-ed by the Berkeley Land ban'-: from the farm credit administration in Washington and covers the new regulation regu-lation issued for the guidance of Federal Fed-eral Land banks in making commissioner's commis-sioner's loans where applicants do not possess title to any of the mineral rights lying under their farms or title to only part of such rights. Commissioner's Com-missioner's loans are made from the $200,000,000 fund made available to the land bank commissioner for refinancing re-financing farm debts and are handled by the land bank agents for the commissioner. com-missioner. Such commissioner's loans are based bas-ed not upon the mineral but upon the agricultural value of the land. Rosult of mining operations, however, is such that agricultural value of the surface land may be seriously impaired or destroyed by sinking of shafts, drilling drill-ing of wells and similar projoc's. In order to provide a uniform policy in administration o f commissioner's loans the new regulations provide 'rules to be followed in such instances. in-stances. In cases where there are no substantial sub-stantial indications from geological reports, actual development or other available information that there will be mining operations, the banks are instructed to make loans provided the 'applicant and his security are other-, 'wise eligible. In cases where mining j j operations may impair but not des-1 troy surface value for agricultural. I purposes loans may be made, taking into consideration the probable amount of damage. i Loans also, may bo made where the applicant will be entitled to royalties, damages or other compensation from any minnig operations on which a lien can be obtained as part of the se- curity for the loan. Where an applicant appli-cant has disposed of his rights in un-, derlying minerals af'er the issuance of the new regulations, the bank may j reject the application. These regula-; tions apply only to commissioner's j loans. I |