The Weston leader. [volume] (Weston, Umatilla County, Or.) 189?-1946, 1916-09-29

ton. II prospective borrower ha'
no money with which 70 pay for hii
association stock, he may borrow
the price Of that stock ~ a part Of
the loan on his farm land.
Under this plan, then. every Dor.
rower must be = stoekholdsz In his
local asociation. and every associa-
ton . stoekholdsr In its district
sank. Zach stockholdsr In an ~.
that association up 10 twice The
amount Of hIs stock.
How Leans Are Obtained.
A member Of national farm loan
association, before obtaining . loan,
must first hll out an application
olank supplied 10 the loan assccia.
ton by the Federal Farm Loan
board. This application blank ana
other necessary papers will then be
referred 70 n loan committee Of the
association which must appraise the
property offered ~ sesurity. Such
application a. il approved By the
,can committee Ia then forwarded
20 the Federal land bank and must
10 Investigated and reported on BY
salaried appraiser Of lhe bank bf.
lors . loan Is granted. This ap-
pralssE 10 required TO Investigate the
aolvency and character Of Inc pros
psctlve borrower as well as the
value of his land. whsn . loan is
granted The amount 10 forwarded "
the borrower Through the loan ~.
sociation.
Conditions Under which Loans May
pe Qhlainsd,
The aet spsCIAcaily defines tho
purposes for which loans may be
obtained. These arsi
la) 70 provide for the purchase
u Land for agricultural uses.
lbl 10 provide for the purchase
u sQuipmsnb feFtligars. and live
stock necessary sor the proper ana
reasonable operation VI lhe mort
gagged fArmJ ahe ssFm equipment
% BE- defined BY the Federal Farm
Loan Board.
lc) To provide buildings and Tor
he Improvement Of farm laada; the
ssrm Improvement TO be dennea
~ the Federal Farm Loan Board.
tdl To liquidate indebtedness o.
he owner Of tho land morsgaged,
existing at the time Of the organsza-
don Of the flrss national farm loan
association established In Or for The
county In which tho land mortgagee
IA situated or indebtedness suDse-
quently incurred for one Of the pur-
poses mentioned In this section.
Loans may BE- made only on iirst
mortgages on farm land.
only those who own and cultivate
farm land or are about 70 own ana
cultivate such land are entitled 70
borrow.
No one can borrow save Tor the
purpose stated In this act, and those
who after borrowing do not use the
money for the purposes specified u
Tho mortgage are liable 70 have then
loans reduced or recalled. The
secretary treasurer Of each associ-
alton is required TO report any d..
version Of borrowed money from the
purposes stated in the mortgages.
No individual can borrow more
than $4,000 or less than sioo.
No loan may be made for more
than SO per cent Of the value Of the
land mortgagsd and 20 per cent Of
the value Of the permanent insured
improvements upon u.
The loan must run for not less
than s and not more than 10 years.
Every mortgage must provide for
the repayment Of the ..san under
an amortization plan BY means Of Q
liked number of annual Or s0mian-
nual installmsnts sufficient 70 meet
all interest and pay OF tho loan BY
the end Of the term Of the loan. The
lnstallmsnts required win be those
published IN amortization tables g
Be- prepared BY the Farm Loan
Beard.
The bank is given power to pro-
tscs itself In case Of default by re-
calling the loan In whole Or In part
or taking ether necessary action.
No Federal land bank Is permit
ted to charge more than 8 per cent
per annum on its farm mortgage
loans, and In no case shall the int
crest charged on farm mortgages ox-
coed by more than one per cent the
rate paid on the last issue Of bonds
For example, Il the bank pays
only four per cent on an issue Of bonds
il can not charge more than Ave pef
- .-A fnrs,. lnana II