Arizona republican., 1914-05-25
RURAL CREDIT
 BILLS TERMS

The following is d description Of the farmers credit bill by the special cor respondent of the Chicago Tribune:
 WASHINGTUN. D. C.. May S.-The rural credit bill providing farmers with a means of obtaining loans on easy terms was completed today by the banking and currency committee of the house of representatives and will be favorably reported to that body next Monday.
 The measure which is scheduled for passage at this session of congress, provides a system of cooperative farm loan associations Of farm land banks. organized on the plan of the federal reserve ~banks. which will issue farm loan bonds The entire system is to be operated under the supervision of the federal reserve board.
 Provisions of the Bill
 The provisions of the bill. are:
 The administration of the act shall be controlled and directed hy the fed erai reserve board created by the city law
 The system of rural credits shall be supervised by national farm loan bu- reau consisting of a farm loan com- mission and assistants appointed and rem0vab. bv the federal reserve board
 Five or more persons may organize, with the approval of the commissioner q national form loan association auth orized to conduct it's business in des isnated county or group of counties.
 The capital stock of each such assO- citation shall be not less than S10,00G. divided into shares of s25 each. Each stockholGer is entitled 10 one vote for 1 each share but not more than niaxi i- mum of ten votes. shares may be pur- chased on the partial payment or build ing and loan association plan Half Of the capital stock of each association may be paid in cash and half in first mortgages. At least 10 per cent of the ] capital shall be invested in United States bonds.
 Loans Limited to Members Only members may obtain loans. Each person contracting a loan shall | own or take out at the time stock equal to , Der cent of the amount of the loan and the mortgage given may cover for the loan and the purchased stock The stock shall be pledged as part of the security and dividends thereon paid to the mnrtgagor. Each l association Is authorized to make loans of current funds secured by first mortgages on farm lands in it's district l to buy from and sell to other associa - 1 tions indorsed first mortgages procured 1 under the act 10 buy and sell farm lorn and United States bonds. and to ac- quire and hold for not longer than five years parcels of land in satisfaction of debts or judgments.
 Every mortgage given for loan shall contain an agreement for the reduction of the loan through annual or semi annual amortization payments. Every mortgage shall run for at least five and not more than thirty wears. The borrower maN eXtinguish th4. loan at any interest dat. after five years by tender Of cash or farm loan bonds. leaal Interest Rates Provided
 The rate of interest charged shah not 1 exceed the legal rate in the state in which the mortgaged land is situated
 Loans may he made to leduidite in ! debtedness of the owner of the ,and i existing at the time the first loan as Sociation is organized in this county. ! fo provide for the Improvement of farm iands to provide for the purchase of equipment and live sttk. to provide l Tor th" purchase of a farm home | No loan Shail exceed 90 Der cent of 1 The value of the land and 9 Der cent "f the vaIra of the buildings thereon. , 1s appraised by the associat ton and ap- 1 proved by the federal reserve hoard ! No loan shall be made to any but an { actual or immediately prospective res
 ident on the land engaged in it's culti- vation. No loan shall exceed s4O00 to any one borrower or 20 per cent of the
 association capital and surplus I Borrowers shall pay all taxes on the 1 land rrd keep buildings insured to the
 satisfaction "f the farm loan commis-
 Sioner insurance being made nayable
 to the mortgage
 Number of Land Banks
 The Federal reserve board is e7npoW
 cred to organize and charter as many federal land banks as there are fedora ! reserve banks and to lay ont as many l land bank districts as there are fedora ] reserve districts. the home office of each land banks being located in the l city in which is situated the .headquar- ters of the reserve bank
 The federal reserve board is author ized to review and alter the interest rate charged by farm loan associations to regulate the issuance of farm loar 1 bonds br federal land banks to recon mend to the secretary of the treasury the purchase of farm loan bonds, and to