Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1916-11-16
National Farm
Loan Associations

(The following article Is from a
circular issued by the Federal Farm
Loan board.)
national farm loan association
may be organized in any community
where 10 citizens owning land de-
sire to borrow an aggregate Of not
less than $4,000. The land must
be unincumbered or the proceeds of
the loan must be used, in part, to
remove any lien. Loans may be as
small as 800, or as large as $1O,-
900.
/ They must make their first appli-
cation, in writing, for q charter to
the federal land bank of the district
in which the association desires to
do business. This application must
be signed by all those desiring to
form the association, stating specifi-
/ cally the name under which they
desire to do business, the amount
each one desires to borrow, the es-
! timated value of the security each
one offers, the territory in which the
association desires to do business,
how the proceeds of the loan are to
be used, and other details set forth
in the blank forms which are fur
nished.
The application having been sign
ed. together with another blank form
furnished, called an organization
certificate" the applicants become
tentative organization and elect an
agent to represent them, called a
"secretary-treasurer they also Sc
lect a committee of three, called a
loan committee" This agent will
then receive, from each of the appli-
cants. a subscription to the stock of
the association they are forming
equal to 3 per cent of the loan they
severally desire, which is not re-
uuired to be paid unless the loan is
granted. That is, each borrower
must subscribe for such shock to the
amount of per cent of his own loan
and no more.
The application for the charter
having been signed, the signatures
must be acknowledged before a not
airy public or other officer qualified
to administer oaths, and then 1t must
be forwarded by the secretary-treas-
urer to the Federal Land bank of
the district
Upon its receipt the bank will send
its agent to examine into the rep
reservations made in the application
and, if found satisfactory, charter
will be granted.
Upon the granting of the charter,
the individuals signing the applica-
tion become body corporate, which
gives it the right to do the business
authorized by the farm loan act, to
extend il benefits to others by TAX
ing in new members from time to
time. and to have succession indef-
initely. New members must be bor-
rowers whose loans may be as small
as 800 or as large as 100000.
Let it be plainly understood that
farmers can organize at once, but
they can not borrow money until
the land banks are established.
Management
After the charter is granted the
applicants no longer act in their in
dividual capacity, but become merg-
ed as shareholders into corpora
tion. which has separate existence
created by law, under the same name
which has been chosen and set forth
in the original application and organ
ization certificate. This corporation
will have directors and Officers Sc
lected by the shareholders to do its
business in accordance with the by
laws which the shareholders make
for their guidance. The active exec
utive officer of the association will
be the secretary-treasurer, and his
duties are set forth in section Z Of
the farm loan act.
Powers
These associations are organized
for the primary purpose of giving to
each borrower the benefit of the
combined credit of all its members to
the extent of the capital contributed
and the limited liability they each
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