The central record. (Lancaster, Ky.) 18??-current, 1916-08-10


loans It makes through the association.
II prospective borrower has ne
money with which TO pay for his asso-
citation stock he may borrow the price
OF that stock as part OF the loan on
his farm land.
Under this plan. then. every borrower
must be n stakeholder I'm his local asso-
ciation and every association a stock.
, holder In Its district bank. Each stock
holder IN an association Is Liable for
the acts of that association up to twice
the amount Of his stock.
How Loans Are Obtained.
A member of n national farm loan as
ISOLATION before obtaining loan must
first fill out an application blank sup
Piled to the loan association by the
federal farm loan board. This applica-
ton blank and other necessary papers
will then he referred to loan commit.
tee OF the association, which must ap
praise the property offered as security.
Such application as Is approved by the
loan committee Is then forwarded to
the federal land bank and must be IN
vestigated and reported on by sal
aired appraiser Of the bank before the
loan Is granted. This appraiser IL re-
Quircd 10 investigate the solvency and
character Of the prospective borrower
us well as the value If his land. When
a loan Is granted the amount Is for
warled TO the borrower through the
loan association.
The act specifically defines the PUG
poses for which loans may be obtained
These are;
(O To provide for the purchase ot land
for agricultural use
Ch) To provide for the purchase Of equip
ment. fertilizers and live stock necessary
for the proper and reasonable operation
Of the mortgaced farm. the term equip
ment" TO be defined by the federal farm
loan board.
(c) To provide buildings and for tho I'M
provement OF farm lands. the term "im-
provement' to be defined BY the federal
farm loan board.
Oh To liquidate btedness Of the own
er OF the lanl mortElged existing at tho
time Of the organization Of the first ma
uonal farm loan association established In
or for the county I'm which the land mort
gagged Is situated or indebtedness subse-
quently Incurred for one of the purposes
mentioned In this section.
Loans may be made only on first
mortgages on farm land.
Only those who own and cultivate
farm land or are about to own aui cul-
tivate such land are entitled 10 borrow.
No one can borrow save for the pur-
poses stated In the act, and those who
after borrowing do not use the money
FOR the purposes specified In tho mort
gage are liable to have their loans rc
duced or recalled The secretary treas.
urer of each association Is required TO
report any diversion Of borrowed mon.
ey from the purposes stated In the
mortgages.
No individual can borrow more thnn
$4,000 or less than 500.
No loan may he made for more than
80 per cent OF the value of the land
and 20 per cent of the value
Of the permanent insured improve.
ments upon It,
The loan must run for not less than
five and not more than forty years.
Every mortgage must provide for thu
repayment OF the bpnn unPor nm AMOR
tization plan by m...,., OF n lived uu,p
Der OF animal or ,emIaryr,t install
ments sufficient To meet al Interest
and pay OF the debt by the end Of the
term Of the llan. The inst,IInc,,. ,,,.
luird will be those pubIIshc,I in amor.
fIzation fables IN be nror.rcI hy ,ho
farm Loan hazard
' "s'o rs'o " "e Dor
S'
~" n7ieraI Iiih bahk Is permitted 10
H"i - iiioIe t'iil' V pei cent Per hhhnih
vi it' iuIll hi"r'Ea-' i"ahS, ana IN IA"
,''c nun '''c A''S' - 'i"'rS'1i On iafil
iioi 's,7'S e"'c'o =! iio'e tALA per
''H' 'he ra'e p''h ON me I'St Issue or
,I,''A'
TUT oA"nIl"'' II inc DUNK pays only
~. ahnr,, 49,, u.s. 81 ~ .u,
-, go, -, =, -, ZIG
On, %, ,ht., ,,.r,.,,' - -. .,
800, - - - ~ -
- :, 90, -, o,, e. ,.ai5 =, - -
,ai ,,o,ons -, -. -,
-, No., -, ~, a.. - ~ '''.
,o,oroa - ,',.. ,'n'.,,, ,at, =, =, ~
,toI as d,,.,,orts o. ,ha ,oan 80