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Show are empowered to lend on first mortgages on farm lands in amounts of $100 to 10,000 for approved purposes. The loans are to be made through farm loan associations and agents. No loan may be made for more than M per cent of the value of the land mortgager! and 20 per cent of the value of the permanent improvements upon it. Local organizations composed exclusively of borrowers are authorized. These associations must be stockholders in the land banks in proportion to the amount their members wish to borrow. Eventually all stock in the Federal land banks will be owned exclusively by these associations. as-sociations. The act prohibits the Federal land banks from charging more than 6 per cent on any mortgage, or requiring fees not approved by the Farm Loan Board. The borrowers will share in the net profits of the bank because be-cause they are stockholders- It is contemplated that ultimately the borrowers will be the only stockholders. Long-term loans are' provided by authorizing mortages for periods per-iods of from 5 up to 40 years. Small annual or semi-annual payments on the principal are made a required feature of all mortgages. ' Joint-stock )and banks are authorized. They are corporations corpora-tions for carrying on the business busi-ness of lending on farm mortgage mort-gage security and issuing farm loan bonds. They are to be under un-der the supervision of the Farm Loan Board, but the Government will not invest in them. Subject Sub-ject to geographical limitations and subject to the 50 and 20 per cent limitation, these banks can lend to an individual any amount they wish, and for any purpose. They can not charge an interest rate exceeding 6 per cent, and such rate must not exceed by more than 1 per cent the interest they have paid on their last issue of bonds. Their mortgages, however, must provide for amortization am-ortization payments. These banks are prohibited from charging, charg-ing, under any pretext, fees oi commissions other than those authorized by the act. Rural Credits System Now a U. S. Law The Act creating a "Rural Credits Law" was signed by the president on the 17th of July and has now become a law. The primary purpose of the law is tc provide a more prosperous agricultural agri-cultural condition by enabling the land owner to borrow sums of money at a low rate of interest inter-est on long time loans. Just when the effect sf this act will reach this country is hard to tell, but it will be made available as soon as the machinery machin-ery for properly handling the funds is organized. The act provides for the creation crea-tion of 12 Federal land banks aid permits the establishment of any number of joint-stock hind banks for the purpose ol making loans at a reasonable rate of interest, for long periods of time on farm lands. A Federal Farm Loan Board has complete control over these banks. Twelve Federal land banks are provided, one in each of the 12 districts into which the country-Will country-Will be divided. These banks |