Show Eed Federal ral F Farm rI l Loans Resumed Resumption of the operations of the fec federal el l f farm loan a act t and the federal loan banks backs backs' which are the theY Y o. o tit c v loaning agencies will will serve erve serve as no no other thin thing could ld to give strength to the agriculture of the nation at ata a time when it needs it sorely In operation but a comparatively few years there are still a a great I man many farmers who are not aware of the privileges and opportunities offered offered of or- under the act While the decision of ot the United States States supreme court courton on February the way for t the banks to begin functioning again there are many steps to be taken before the machinery can be set In motion and loans can be made roade to the farmers Since the last of February the presidents presidents- of the twelve federal land banks have been In in- session In Washington with the members of the farm loan board board and and Its high officials daIs to to determine the upon mth which which will will will-be be pursued Preparing for Operation r Willard D. D Ellis the former Og- Og banker who is now president of the federal land bank of Berkley Gal Cal which serves Utah and Idaho is now said to to be from Washington to California preparing to to begin operations Meanwhile l inquiries inquiries' are coming by the score to L. L R R. R Martineau fed- fed federal land ralland eral land appraiser for Utah asking when and how farmers can obtain loans Mrs Martineau said that he heIs heis heis is as yet without definite Information Information information tion as to the immediate plans of i the banks but that he expects word before many weeks have passed Before Defore additional loans can be e made by the banks means must be bo found of selling additional Issues of ot bonds to provide the funds necessary ry and this question of new securities securities ties Is understood to have been l one of the Important matters under discussion discussion dis dis- in Washington There are still some counties In Inthe Inthe th the state where the farmers have havo not yet availed themselves of the opportunity of securing the long term loans possible under the act At this time It might be well to explain explain explain ex ex- plain briefly and generally the manner manner manner man man- ner in lu which the loans are obtain obtain- ed At t the top of the organization is the fe federal eral fa farm Joan n board with witha a o oi e a men appointed ky by tl the e preside president pt t They exercise se the general general supervisory powers power The he country Is divided Into twelve districts districts dis districts dis- dis each cach with a federal land land bank The Th The powers of these thes banks banks are defined in the act as follows First to Issue subject to the ap approval of oC the ral fe farm Carm l loan an boa board d and sell farm farm loan bonds binds of or orthe the kinds authorized in this act act to buy the same for tor Its n d lc account nt and to retire the tho same at or before maturity Second Second to invest such funds as I may be bo In its possession in t the p puri pur- pur r- r fi y S i i chase chas of qualified first mortgages on farm lands situated ed within the led fed federal edral era eral land bank district t within which it is organized or for which it Is Acting k Third to receive and to deposit In trust farm loan loal registrar r for the district to be held by him aBco as aB co collateral security for farm farm load loan bonds first mortgages upon farmland farm farmland farmland land qualified under section 12 of fl this act and to empower national farm loan associations or duly authorized authorized authorized au au- agents to collect and immediately immediately immediately im im- im- im mediately pay over to said land banks the dues Interest amortization tion instalments and other sums payable of the mortgages and or orth of th bonds secured thereby Loans are made by the bank to torun torun run from five to forty years und under r ran an amortization plan of Interest payment payment pay pay- paY paY-I ment whereby the borrower reduces the of the loan capital amount pert peri I The loans are made only through I national farm national farm loan associations A i bulletin of the board says says' of these I I ItA organizations r A tA national farm loan association association I tion may maybe be organized d in a any community community community com com- where ten citizens owning I land desire to borrow an nn aggregate of not less than The land must be unencumbered or the pro pro- needs of the loan must be used In part to remove any lien Loans may be as sm small Il as or as large a as Must Mast Obtain Charters They must application application in writing for Cor a charter to the federal federal federal fed fed- eral land bank of the district in which the association called articles s sot of ot association must be signed by all nil those desiring to form the association association association tion stating specifically the amount each one desires to borrow the es estimated estimated estimated es- es value alue of the security each one offers the territory In iu which the tho association desires to do business how the proceeds of the loan are to tobe tobe tobe be used and other details Each applicant when a loan Is grant must take 5 per cent of the amount of his loan In the capital capita stock of the land bank for which he will receive such dividends as maybe may maybe be Issued To show the nature nature orthe ot or the associations and their protect protective ve features the same bulletin says sas further These associations are organized r for f the primary purpose purpose of giving to each borrower the benefit of the combined c ed cr credit of all its members rs to the extent of the capital contributed ted and nd the limited liability f they e e each ch in incur cur acid ami ud hence the associations ia- ia tio s' s sare are required to Indorse every loan made to members I II It Is also through these associations that the borrowers will be become ome the owners owners of the federal land Janet banks The association decides whether any loan may be made or not by refusing tho the application for every loan which Is considered un- un Cont Continued nu d on Page Three wr FEDERAL FEDEn L FA FARM LOAN AN RESUMED From Page One safe or even doubtful No loan can be made unless it Is approved by the loan Joan committee after aCter examination I f of oC the land offered as security I The national farm Carm loan associations 1 are not limited as to the number number num- num num 1 ber of their members After one is organized it may serve an en entire Ure neighborhood by receiving new v members Each association may obtain ob ol tain tamo In loans for its ts members twenty twenty t ty times the amount of or its its' stock Jn in inthe n the federal land bank band no matter i how large its holdings of stock may become by the growth of the association tion Limitations Enumerated Limitations are pla plaited placed ed upon loans by the banks as follows No loan may be made except upon the security of first mortgage The amount of the mortgage cannot exceed one-half one the appraised value of the land and 20 per cent of the permanent Improvements thereon which must be insured I The proceeds of the loan must be e used for the extinguishing of oE preexisting indebtedness or for Cor productive productive productive pro pro- purposes which include the purchase of of livestock fertilizers equipment and Improvements Every mortgage must contain an agreement to pay payoff off the debt principal and interest In fixed annual annual annual an an- nual or semi-annual semi Installments The rate of Interest charged any borrower cannot exceed 6 per cent The borrower cannot be called upon to pay the debt except by the Installments he originally fixes unless unless unless un un- un- un less he defaults but after five years he may pa pay off the whole or any portion at his option at any Instalment in instalment instalment In- In period Under the amortization amortization plan the term of the loan and the amount of each installment are relative determining one fixes the other The strength of first mortgages conservatively appraised and manage managed managed man man- age aged l by resident farmers having the interest of limited liability y Is 1 ue- ue eI e- e hind the bonds of the federal land banks and these bonds by reason of the recent decision are upheld in their heir tax exemption Tl The e soundness Q of such security is undoubted Farmers throughout the country and bankers and business men as aswell aswell aswell well are watching with closest Interest Interest interest Inter Inter- est and attention the plans for the resumption of the farm loan act |