The Churchill county standard. (Fallon, Nev.) 1908-1920, 1912-06-12
the HOMESTEAD MORTGAGE
Congressman Roberts Secures
Further Information Rela.
tive to Farm Units.
Hon. E. +. ROBERTS,,
| HOUSE OF REPRESENTATIVES.

HOUSE OF REPRESENTATIVES,.
DEAR SIR: Referring to your per-
sonsl call. have the honor to return
herewith the letter Of May Is, 1912,
from Mr.. D. e. Williams. of Fallon,
Nevada, addressed to you, and in con-
nection Herewith you are advised that
this Department has held that home
stead entrymen may mortgage their
claims for the purpose Of improving
the same or any other purpose not in
consistent with good faith. See Lar
son v. Weisbecker. l.. D.. AZ; Mug
gett v. d. & S. R. r. Co., 8 L. D., 243;
Dawson v. Higgins, 70 L. D., 234; and
Hafemann v. Gross, 1893 U. S., 342.
If mortgages are executed and placed
of record the mortgages would be pro-
tected by the law in the event that the
entries were perfected and patented.
If, however, entrymen should fail to
complete the entries or comply with
the law with respect thereto, the mort
gagees would not be protected, except
to the extent of being entitled to notice
of proceedings and to intervene therein
in the event their interests were dis
closed by filing in the local land Office,
notices of such interest. 1t has been
uniformly held that a mortgage or
transferee has no greater right by
reason of incumDrance on the land as
against the Government than has the
entryman and is not entitled to protec-
ton by the Government in the event
that the entry is found to be illegal, or
is cancelled because of failure of entry
man to comply with the law.
Under regulations approved April %,
1912, by the Department, mortgages
of homestead entries within reclamation
projects may file in the local land office,
for the district within which the land
is located, a notice of such mortgage
and shall become entitled to receive and
ceeding thereafter had affecting such
lands as is given the entryman.
Under the act of June %. 1910 (36
oJhlS., OSEJ IcCidHuetfoii homcStSau
entrymen may, after submission of sat-
isfactory final proof. assign their en-
tries, and a circular of December IL,
1910, is inclosed herewith, giving infor-
nation as to the manner of such assign
ment. The Department has held that
entrymen who have submitted final
proof and mortgaged their claims will
not DO allowed to relinqulsh the same
to the United States without notice to
the mortgagee, and by analogy they
are precMded from assigning their en-
tries or any part thereof under the act
of June %, 1910, without the consent
of the mortgage, provided the mort
gage 10 duly recorded and notice thereof
has been properly filed In the local land
Office. Under Reclamation Service
order No. 1873, set forth in the Recla.
nation Record for February, 1912,
mortgages are permitted to make pay
ment Of water-right charges In default
within 60 days Of notice that the entry.
man has failed to make payment of
the same, such payments to inure to
the benefit Of the water right applica-
ton. This affords the mortgage m
opportunity to protect himself against
forfeiture of the entry because of nom
payment of water-nght charges. and
where final five-year proof has been
submitted on the entry and the same
has been accepted rs sufficient under
the ordinary homestead law as to resi-
dence, improvements and cultivation
and one-hslf of the irrigable area In
the entry has been reclaimed, as re-
uuired BY the Reclamation Act, the
payment of water-right charges is the
only remaining obligation against the
land held by the Government.
Very respectfully,
S.V. PRouDyIY.
! Assistant Commissioner,