Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1916-09-16

price OF sucn STOCK as part OF the
loan on his farm land. Each stock
holder in an association is liable for
the acts of the association up to
twice the amount of the stock he
owns
To obtain loan farmer must be
stockholder in local association
to an amount equal to five per cent OF
the sum he desires to borrow. The
association, when organized, will have
a loan committee to whom he will
apply for approval of the loan. This
committee will appraise the value OF
the security he has to offer. If it ap.
prove the loan, the application is for
warded to the regional bank which
will cause the same to be investigat,
ed and reported on by salaried ap-
praiser OF the bank. This appraiser
reports not only on the value of the
land, but the solvency and character
of the prospective borrower.
Loans may be obtained only for the
following purposes:
A To provide for the purchase Of
land for agricultural uses.
B To provide for the purchase OF
equipment, fertilizers, and livestock
necessary for the proper and reason
able operations OF the mortgaged far.
c To provide for buildings and
the Improvement of farm lands.
D To provide liquidate existing in.
debtedness incurred for any of the
purposes above mentioned
The maximum loan to any one mem
Der is $4,000 and the minimum $100.
No loan can exceed fifty per cent of
the appraised value of the land mort
gagged, plus twenty per cent of the
value of the permanent improvements.
The loan may run for any period of
not les than FIVE years not more than
forty years.
Payment of the principal and inter-
st on the loan is based on an amorti-
:ation plan of fixed number of an
nual or semi-annual payments, each
n the same amount, and sufficient to
iquidate the mortgage at the end o
he prescribed number of years.
No regional bank is permitted
charge more than six per cent pei
lnnum on its farm loans and in no
'ase shall the interest charge exceed
IN the banks last issue of bonds.
That is to say, if the banks last is
iue of bonds, on which it pays inter-
est, were at FIVE per cent annum, then
me per cent above the interest rate
The maximum interest rate the farm
,r will have to pay is six per cent or
me cent in excees thereof. AS these
'onds are not only amply secured By
irst mortgage farm reality in double
The value of the loans, but are sub,
tantially guaranteed by the United
states Government, it is believed that
hey can readily be marketed at in.
.erest rates, in time, as low as foul
Der cent, thus reducing the farmer.
interest to about FIVE per cent.
Under the amortization plan of
equal annual payments the farmer
would pay about So per annum on
Zach $1,000 borrowed. forty-year basis
which in that time would extinguish
he principal and interest of the loan.
ind give him no worry in respect tc
he mortgage coming due. This COM
oares very favorably with $50. per an.
1um interest commonly paid by farm
,rs, with the liquidation of the mort
gage matter of considerable i'm
mediate concern. The operations of
he Landschaften" system in Europe
IN which the present law is in part
based has contributed enormously to
the development of agriculture in
those countries, and similar good re-
'ults are anticipated here.
The Joint-Stock Land Banks
Aside from the foregoing provisions
of the act the farmers and stockmen
If Nevada will be particularly inter-
ested in the joint-stock land banks
authorized by the new law. These
will be under the supervision and con,
troll of the Federal Farm Loan Board
nuc.l as National Banks are under the
supervision and control of the Treas
ury department. They must have
capital of not less than $2sO,0OO each
and may be located in any district
not already covered by like bank
each bank having prescribed and ex-
elusive territory within the district
regional bank for its operations. It
may loan more than $4,000 to an indi-
vidual, subject to the fifty per cent
~ turo ros,kx A.