The county record. [volume] (Kingstree, S.C.) 1885-1975, 1916-07-20

elect pfeSlucue, SiSS-PiSSioSe'
loan committee of three. and Sec
retary-treasurer. All directors and
other officers, except the secretary
tr easurer, whose compensation shall
be fixed by the board of directors,
shall serve without pay.
1t is the business of the secretary
treasurer to act as the custodian OF
the funds of the association, collect
and forward to the district land
bank payments of interest and prin-
cipal when due. and to keep COM
plete records Of all transactions.
He is to be bonded in such sum as
the United States Farm Loan Board
may deem necessary.
When the local association has
been organized as above outlined, it
is the business of the secretary.
treasurer to toward to the Federal
land bank in his district the articles
of association accompanied by a re-
port of the loan committee of the To-
cal association, together with all
other evidence needed to show that
the association has complied with all
the requirements. Upon receipt of
this, the Federal land bank apprais-
er is required to investigate and re-
port. If his report is favorable,
the application is forwarded to the
Federal Farm Loan Board at Wash
ington, for final approval or rejec-
ton. If approved, a charter is
granted the local association and the
Federal land bank is instructed to
grant the loans applied for.
Upon making application for men,
bership in the local association, Jones
must subscribe for stock in it to the
amount of 5 per cent of the face of
his loan. In other words. if he is to
get loan of 81, 900, he must take
$50 worth of stock in the association.
Suppose, however, Jones is hard up
just then and hasn't the $50. In
such case, he will be assigned $50
worth of stock and this amount will
be deducted from his loan, he re-
ceiving $3.50 instead of 81, 900. 1t is
expressly provided, however, that
when Jones' loan is fully repaid that
he shall be paid cash for the stock
he holds.
Jones is also required to pay the
actual expenses incident to apprais-
ing his land, examining the title,
and making and recording the mort
gage. These items will probably
range from $40 upward, depending
upon circumstances. On a farm of
80 acres, these items of expense will
run probably not less than $40 or
SIS or more than $50 or $40. 1t is
provided that these expenses, too,
may be advanced to Jones by the
Federal land bank, in case Jones at
the time is hard up for ready cash.
LoaEs are to be made for the pur-
pose of buying, improving, or pay
ing off the indebtedness on farm
lands; shall run for not less than
five nor more than forty years; and
the interest rate, exclusive of amor
tization payments. (that is, payments
on the principally. shall not be more
than one per cent greater than the
interest paid by the last series of
farm land bonds issued by Federal
land bank in that district, and in no
case shall be greater than 6 per cent
per annun.
As an illustration of how the amor
tization plan of payment works. we
will suppose that Jones borrows his
81, 900 for a term of 16 years, pay
ing per cent interest. In this case,
l6 annual payments of 500 each
will serve to pay the interest and
entirely repay the principal. Or if
Smith borrows $lOO at 6 per cent in
terest. he may by making 10 annual
payments of 50 each, entitely repay