American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1915-02-25

Montana almost unanimously, and points the way
to secure cheap money for farmers in advance of
the enactment of national and state rural credit
laws:
Be it enacted by the Legislative Assembly of the
State of Montana:
Section l. There is hereby created a depart
ment of farm loans. which department shall be in
charge of the state treasurer, who shall be ex-
officio commissioner of farm loans to serve with
out extra compensation. The commissioner may
employ, with the approval of the governor, such
deputy assistance as may be required to discharge
the duties of the department, and the cost of such
assistance and all other cost of the department
shall not be paid out of state funds but shall be
paid as hereinafter provided. All funds coming
into the hands of the commissioner shall be kept
separate and apart from state funds; and the
Commissioner shall have power to make all nee
essary rules and regulations to govern said de-
partment.
Section 2. The Department of Farm Loans shall
have a seal bearing the words Department of
Farm Loans, State of Montana, Seal" Said seal
shall be used upon all bonds and mortgages and
such other instruments and documents as the
Commissioner may designate.
Section 3. The County Treasurer in each county
of the State, is hereby designated as the local rep
resentative of the Department of Farm Loans in
the respective counties, and said services shall be
performed without extra compensation, under the
direction of the Commissioner.
Section 4. The department shall receive appli-
cation for farm loans through the County Treas
urer, or other agencies in each county, said appli-
cations to be made upon suitable blanks furnished
by the department. The Commissioner shall re-
quire proof of value of lands offered as security,
including an appraisal by three disinterested tax
payers or public officials, and shall take the nee
esssary steps to verify the facts set forth in said
applications, and only those applications shall be
approved which shows good title; and no applica-
ton for a loan shall be approved for more than
one-halft of the value of the security, on a produc-
tive basis, as determined by the Commissioner.
Loans shall be made only on acreage property out
side of incorporated towns and cities, and prefer
ence will be given to those applications in which
the applicant resides upon the land as security
and uses the same for productive purposes. No
application shall be approved unless the Com
missioner is satisfied that the applicant will be
able to meet the payments required to extinguish
the loan with interest.
Section s. The Commissioner shall, on the de-
mand of any applicant for a loan, furnish such ap-
plicant with complete information concerning all
property offered as security for any series of
bonds, and any five or more applicants for loans
under such series of bonds may examine the sew
eral pieces of property offered as security, such
examination to be made either in person or by a
committee; and if any three applicants shall file
with the Commissioner an objection in writing to
the sufficiency of any security offered, the prop
erty to which such objection is made shall not be
accepted by the Commissioner as security for any
greater sum than one-half of the value fixed by the
persons making such objection.
Section 6. Whenever the Commissioner has ap-
proved application for loans amounting to One
Hundred Thousand Dollars in the aggregate, he
shall proceed to issue negotiable bonds for a like
amount, which bonds shall be secured by first
mortgage upon the several pieces of property de-
scribed in the approved applications; but if any
applicant fail to execute the mortgage as required,
or fail in any other respect, the Commissioner
may award the loan to other applicants. Each is
sue of bonds shall, as far as practicable, be Sc
cured upon lands in contiguous or adjoining ter
ritory.
The Commissioner of Farm Loans shall be named
as the MORTGAGE in trust in the instruments secur-
ing said bonds and to secure the advantages OF
combined credit, each piece of property shall be
pledged to secure all Of the bonds in the particu-
lar issue, with a provision that in case of fault of
any one of the mortgagors, the property pledged
by such mortgagor shall be sold for the benefit of
the mortgage, and if the sum realized is less than
the amount for which the property shall have been
pledged, with interest. each piece of the remaining
property shall be liable for its proportionate share
of such deficit. The Commissioner shall insert in
each mortgage all proper safeguards for the pres
ervation Of the property pledged as security, and
such matter contained in any mortgage shall not
affect the negotiable character OF the bonds secur-
ed by such mortgage.
Section 7. Whenever the owners Of land pres
ent a petition to the Commissioner, signed by such
owners, requesting that a series of bonds amount
ing in the aggregate to less than One Hundred
Thousand Dollars (s1OO, 100000 be issued, and the
lands offered as security meet the requirements
of this Act, the Commissioner may issue said SER
ies of bonds in any amount not exceeding in the
aggregate one-half the total value of the land (as
determined By the COMMISSIONER offered as Sc
crrity, and such bonds may bear any rate of in
terest agreed upon by all Of the owners whose
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