Show RELIEF FOR FARMER IN NEW SENATE BILL A now new farm relief relict bill which was passed recently b by congress and signed by the y president y t provides r relief to tanners farmers with mortgages the interest rates on loans have been decreased a five year mor orin on the principal has hag b been ee 11 declared and re financing n made ade possible an article written by L 13 and sent to newspapers reads relief nellet Is provided tor for the debt involved tanner farmer in the farm relief bill recently passed by congress and signed by the president part 11 of the act gives direct benefit to the farmer whose mortgage Is held hed by any one of the 12 federal I land and banks interest rates that are now 5 to 6 per cent will be reduced to 4 12 1 2 per cent and will remain at this rate tor for the next five years also tor for a period of 5 years the principal payments called amortization A payments will not be required it if the mortgage Is otherwise kept in good standing in addition tile the land banks are given authority to permit borrowers to postpone such interest payments as they can show allow they are unable to meet to make this possible the secretary of 0 the Treasur ery is authorized to subscribe an additional to the paid l ln aurelus ot of the federal land banks however this provided for 43 only a small group of the farm mortgage debtors to meet the needs ot of ta the 1 a larger class whose mortgages are held by others and especially ally to protect from the loss of their farms and homes those whose mortgages mart gages are in danger of foreclosure the act supplied another means of financing it all authorizes tho th vie the banks to issue 2000 of a special type of bond on oil w which aich the rate of interest may not be more than 4 per cent with the funds thus provided the federal land banks are enabled to do two things first from the proceeds of the sale of these bonds the land banks may take new loans on the same liberal terms of payment as those granted to present borrowers second they may exchange these bonds tor for farm mortgages the terms of exchange are to be based on the value of property covered by tho the mortgage if the appraised of the tarm covered by Is offered to the land i banks which exchange Is more than twice the amount of the mortgage bonds may be issued in exchange for the balance of the unpaid principal ot of the mortgage in no case how ever may the amount of bonds given in exchange tor for a mortgage exceed one halt half the same normal value of the land as appraised by land bank appraisers plus 20 per cant of the value of permanently insured improvements on the land by these provisions it Is in many cases that principal and interest will be scaled down and that mortgage holders in ft a great many cases will be quite willing to do this rather than take chances of ultimate col lection of the principal of a mortgage mor which has not suf sufficient r eclen t sound bound value behind it there are several other provisions r in this act and more detailed explanation may be obtained from your local extension service agent who has been requested by mr air henry jr chairman of the federal farm board and governor of the farm credit administration to disseminate this information to those that might be interested in the agriculture credit provisions of the farm mellef act |