The Cordele dispatch. (Cordele, Ga.) 19??-1971, 1916-07-23

and must be investigated and report
ed on by salaried appraiser OF the
bank before the loan is granted. This
appraiser is required to investigate
the solvency and character of the pros
pective borrower as well as the value
of his land When loan is granted
the amount is forwarded to the Dor
rover through the loan association.
Conditions Under Which Loans May
Be Obtained From Federal Land
Banks.
The Act specifically defines the pur-
poses for which loans may be obtain
ed. These are:
"(a) To provide for the purchase of
land for agricultural use
"(b) To provide for the purchase
of equipment, fertilizers and live stock
necessary for the proper and reason
able operation of the mortgage farm;
the term equipment to be defined by
the Federal Farm Loan Board.
"(c) To provide buildings and for
the Improvement of farm lands; the
term Improvement to be defined by
the Federal Farm Loan Board.
"(d) To liquidate Indebtedness of
the owner of the land mortgaged' eX-
listing at the time of the organization
of the first national farm loan asso-
ciaion established in or for the county
in which the land mortgaged is stu
ated, or Indebtedness subsequently in
Cured for one of the purposes men
toned 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 and cul-
tivate such land are entitled to bor-
row.
No one can borrow save for the pur
pose stated in the Act and those who
after borrowing do not use the money
for the purpose specified in the mort
gage are liable to have their loans re-
duced or recalled. The secretary
treasurer of each association is requir-
ed to report any diversion of borrow
ed money from the purpose stated in
the mortgage.
No individual can borrow more than
$40 900 or less than 500.
No loan may be made for more than
so per cent of the value of the land
mortgaged and 20 per cent of the val
lie 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
the repayment of the loan under an
amortization plan by means OF fixed
number of annual or semiannual in
stallment sufficient to meet all inter
est and pay off the debt by the end of
the term of the loan. The installments
required will be those published in
amortization tables to be prepared by
the Farm Loan Board.
The bank is given power to protect
in case of default by recalling the loan
in whole or in part or taking other
necessary action.
Interest Rate Paid BY Borrower.
No Federal land bank is permitted
to charge more than per cent per an
mum on it's mortgage loans, and in no
case shall the interest charged on the
farm mortgages exceed by more than
one per cent the rate paid on the last
issue of bonds.
For example, if the bank pays only
q per cent on an issue Of bonds, it can
not charge more than per cent for
the next farm loans it makes.
Out of this margin of not to exceed
1 per cent, together with such amounts
as it can earn on it's paid-in-cash cap
ital, the bank must set aside certain
reserves and meet all it's expenses.
Any balance or net profits can be dis
tributed as dividends to the loan as
sociations or other stockholders. The
loan associations, from their bank div
idends, after setting aside the required
reserves and meeting expenses, can de-
clare association dividends to their
members. In this way the profits, if
any, will be distributed among the Dor
rowers and will, to that extent, reduce
the amount of interest actually paid
by them.
fulfil llliIlllllIllll
No Cir q