The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1916-12-07
Rules For Farm Loan Law
Interest Rates Fixed at Per Cent Amounts Loaned
From $500 to $5000-State Inspectors to
Appraise All Lands.

Rules adapted by the state board
OF land commissioners for the loan
ing Of school funds upon farms pro-
vide that loans shall be made on i'm
proved lands OF an appraised value
of not less than $40 an acre for
period Of not less than three nor
more than 10 years. Loans will be
made in amounts not exceeding two
ffths OF the appraised value but in
no case for sums less than $500 nor
more than $1,000. The interest
rate is fixed at & per cent. In fixing
the interest rate the board was guild
ed by the Initiative farm loan law,
but in fixing the amount to be loaned
was more liberal than the original
Law. which provided that not more
than two-fifths Of the assessed value
should be loaned. The board, in
stead of taking the assessed value,
takes the appraised value.
The rules are As follows:
Loans will be made only to actu
al residents of Montana. aud only up
on good improved farm lands Of an
appraised-not assessed value Of
not less than $40 an acre. No loans
will be made on more than two
fifths Of the appraised value of lands
offered as security therefor.
Must File Agreement
Any person desiring a loan must
lille with the register Of state lands
a verified application, upon a form
Furnished by the state board Of land
commissioners. Such application
railroad fare and travelling expenses
of the state land agent appointed to
make an apprisal of the lands offered
as security. No application will be
considered unless such agreement is
filed Applicants must furnish at
their own expense an abstract Of tt
tie to lands offered as security upon
request from the register OF state
lands
"All loans shall be secured by q
first mortgage upon lands offered
for security upon form furnished
by the state board of land commits
sioners. running to the state of Mon
tana as mortgage.
"All loans shall bear interest at 6
per cent per annuln payable anually
to the register of state lands, who
shall receive all monies, both princi-
pal and interest, arising from such
loans, and accounts thereof to the
state treasurer.
$500 Is Minimum.
mo loan shall be made Of a sum
less than $500; and not more than
$4,000 will be loaned to any person,
firm or corporation No loan will be
made for less than three nor more
than ten years. Payments may be
made upon the principal OF any loan
running for more than three years
in whole, or in part by payments of
800 or multiples thereof, upon any
interest bearing date, after three
years from the date of said loan.
Before any loan is made the lands
lands offered as security therefor
shall be examined and appraised by
the state land agent whose appraisal
shall be based upon the productive
value Of the land, exclusive of build
ings The state land agent shall re-
port his findings to the state board
of land commissioners upon forms
furnished by said board.
"All applications for loans shall as
nearly as practicable be considered
and acted uuon in the order of their
fling.
Certificates of Discharge.
''upon the full payment of princi-
pal and interest and all other sums
DcCCIlluS auc upou dAS A1l III ivan
mortgage, the register of state lands
shall execute necessary certificate
discharge and release as required
by law.
"Wheneyer any farm loan mort
gage has been executed, the register
of state lands shall forthwith have
the same recorded In the records OF
the county in which the land nypoth-
ecated thereby is situated; he shall
also have custody and safely Keep
~. prOmisoTy nGiec or other obllga-
tions given ny persons to whom mon-
ey is loaned.
'rhe g;ster ST state lands is
hereby authorized 10 purchase, or
have printed, any and all books and
forms necessary properly to record
the transactions involved in loaning
state funds upon farm mortgages.
and blank forms of mortgages, notes
applications for farm loans and ex-
aminer's reports.
''These rules are subject to change
by the state land board at any time
without notice"
Thirty applications for loans have
been received by the state board of
land commissioners, and the appli-
cants next week will be supplied
with the necessary blanks upon
which to make formal application.
A circular letter has been prepar-
ed by Sidney Miller, register Of state
lands, which is being sent to appli-
cants, explaining the terms on which
moneys will be loaned.
Most of the loans are for sums
averaging about $4,000, but one
applicant applied for loan of $780,
900. This will be denied, $4,000
being the maximum
Rev. Thomas Sheehy went to Re-
gina early this week, where on Mon
day he conducted the funeral ser
vices for Mr.. Julius Poncelet, who
died last Thursday The deceased
-, leaves a widow and five children to
mourn his loss The large numbers