Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1916-08-09
CLONE and Farm }

systems: one operating through re-
gi0nal land banks and the other opc-
rating through joint stock banks.
Both systems will be under the Su-
pcrvisi0n OF the Federal Farm Loan
Board OF the Treasury Department.
composed OF the Secretary Of the
Treasury and four members appoint
cd by the President.
The Federal land bank system
provides for Federal land banks
which shall make loans for the first
twelve months exclusively through
local national farm loan associations,
composed of borrowers. These asso-
Citations must be shareholders in the
banks and the borrowers must be
shareholders in the associations, and
will thus share in the profits. The
money for the loans is to come from
the capital Of the banks and from
bonds issued by them based on farm
mortgages. The maximum rate is
per cent.
There will be twelve farm loan dis
tricts, each containing a land bank
with minimum capital stock OF
S750,000, whose stock shall be open
to public subscriptions for 80 days.
All stock not taken by the public will
be taken by the Federal government.
which shall receive no dividends on
its stock. The land banks will make
loans through the local loan assor;a-
ti0ns, and where no loan association
is formed. the Federal farm loan
board will make loans through ap-
proved agents.
Loan Associations.
An association may be formed By
ten or more persons who own and
cultivate land in one locality. provid-
ed the aggregate Of the loans desired
is not less than 100000. Each mem
Der OF an association must subscribe
for stock to the extent OF 5 per cent
Of his loan. The association holds
his stock as security for his loan in
addition to mortgage. and when the
,>'''S>'N>>A>H
bank it must subscribe for stock in
the bank to the extent of 5 per cent
OF It's loan. In this way the stock
bought by the Federal government
when the twelve banks are organized
will be absorbed by the public. If a
borrower has no money to subscribe
for the stock. he can include in his
loan sum sufficient to pay for it.
Provision for an appraiscmcnt OF
land and an investigation Of the
character OF the borrower is made.
How Money May BE Used.
The act specifically defines the pur-
poses for which loans may be obtain
ed. These are:
"tO TO provide for the purchase
OF land for agricultural uses.
"tb) TO provide for the purchase
Of equipment, fertilizers and live
stock necessary for the proper and
reasonable operation of the mort
gagged farm; the term equipment to
he 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
~ nn1 70
citation established in or for the
county in which the land mortgaged
is situated, or Indebtedness subse-
uuently incurred for one Of the Dur-
noses 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 and
cultivate such land are entitled to
borrow.
No individual can borrow more
than $4,000 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 value of the permanent insured
improvements upon II,
The loan must run for not less
than five and not more than 40 years.
Every mortgage must provide for
the repayment Of the loan under an
amortization plan by means of a fixed
number of annual or scmi-annual in
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