The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1917-03-02

| This appraiser must determine the
solvency and character OF John Smith
as we'll as the value Of the land.
Finding everything satisfactory, tie
the local loan association and trst
mortgage on the land taken.
Smith will pay 6 per cent interest
on his loan and will have from 5 to
40 years in which tor pay IL back,
making regular annual payments, q
portion Of which will pay the interest
aud portion going to reduce the
amount of the principal, SO that at
the end OF fixed number Of years
the debt IS paid off. Ii for longer
period than Ave years. Smith will
have the right to pay more than the
regular amount at the end of five
years, and thus reduce his debt more
rapidly Should he fail to make pay
ments when due he will lie charged 8
per cent on such defaulted payments
until they are taken care OF, or the
loan will be recalled
As member Of the local loan asso-
citation Smith is liable for the acts OF
association uD to twice the amount of
his stock. If there are any profits
after the required reserves and neces-
sary expenses are set aside, the asso--
citation will declare a dividend and
Smith will thus get back a portion of
the interest he has paid on his loan.
If Smith has no money with which
to make a first payment of ST 900 ON
the land he wishes TO buy or he has
90 other farming land which he eau
offer as security, be cannot borrow
money through the loan association,
for all loans are made only on flrSt
mortgages on farm land and for not
more than so per cent Of the value 0f
J the land mortgaged and 20 per cent
; of the value of the permanent Insured
improvements on IL. Further, IL he
decides after securing his loan that
he will use portion OF the money for
some other purpose than paying for
the land, he is liable To have the loan
reduced or recalled.
The law specifies that the only pur-
pose for which money can be borrowed
is for the purchase Of land for agrl-
cultural use; for the purchase Of
equipment, fertilizers aud live stock
necessary for the proper and reason
able operation of the mortgaged farm,
the term equipment" to be deter
mined by the federal farm loan board; |;
for the erection of buildings aud the
improvement of farm lands and to
y llquidate, indebtedness of the owner
on the land mortgaged existing at the
time the first national loan assucia-
tion was established IN or for the
= ounty In which the land mortgaged
? Is situated.
The farm loan banks are located as
follows:
District Springfield, Mass, Gov
ers Maine, New Hampshire, Vermont,
,s Massachusetts, Rhode Island, Con-
i, nectlcut. District 2-Baltimore, COY.
Il ers Pennsylvania, Delaware, Mary.
At land, Virginia, West Virginia, Dis
trict OF Columbia. District j.
q. Columbia, S. c., covers North Caro-
lima, South Carolina, Georgia, Florida
n District 4-Louisville, Ky. cover
ts Ohio, Indiana, Kentucky. Tennessee
~ bama, Mississippi, Louisiana. Dis
A. trict 6-St. Louis, covers Illinois
Missouri, Arkansas. District 7-St
no Paul, Mimi, covers Michigan, Wis
ha consiu, Minnesota, North Dakota
90 District 8-Omaha Neb., covers
%. Iowa, Nebraska, South Dakota
Il. Wyoming. District 9-Wichita
ty Kan, covers Oklahoma, Kansas
oo | Colorado. New Mexico District II
~ Houston, Texas, covers Texas
of District 11-Berkeey, CAL, cover
California, Nevada, Arizona. Dis
trict 12-Spokane, Wash, cover
Washington, Oregon, Montana, Ida
no.