Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1917-02-23

'aihable except by examination OF
the records, the borrower will have
10 pear the cost of such examination.
s. When a husband and wife ex-
ecute Joint mortgage should one
give the other power of attorney To
be the representative in the Farm
Loan Association? Both husband
ana wife should sign the mortgage.
out the one in whose name the title
stands should be the member of the
association.
>, What is the basis for apprais-
ing lands? The appraisement of
farm should represent the best
Judgment of the members of the loan
committee as to the value of the land
III question, the principal factor be-
ING the productivity of the land when
used for agricultural purposes, but
taking also into consideration the
STABILITY of the land and prevailing
land prices in that community.
10. What will be the size OF the
bond of the secretary-treasurer
This will depend upon the size of the
association. The bond need not be
large enough to cover the aggregate
amount of money borrowed by the
members of the association because
this money will be transmitted in
such a way as never to be in the ex-
elusive control of the secretary
treasurer. 1t should be large enough
merely to cover the interest and
amortization payments, called the
installments, as we'll as the deposits
likely to be in the hands of the Sec
retary-treasurer at any one time.
IL. What is the judgment of the
Farm Loan Board as to compensa-
ton for the loan committee? This
depends so much on the size of the
association that no fixed rule can be
made. Since this is cooperative
banking system, the Farm Loan
Board desires that work, as far as
possible, be done without expense.
The board believes that in a small
association it will not be necessary
to pay the loan committee any fees.
The board believes that in very few
cases will it be necessary to pay the
loan committee more than actual ex-
penses.
~. What is the judgment of the
Farm Loan Board as to the COM
pensation to be paid the secretary
treasurer? This also depends so
much upon his relative duties as
fixed by the size of the association
that it is difficult to name an amount.
This compensation should be based
upon the time actually required to
perform the work of the association.
10. May one man, by owning
two pieces of land, become a mem
Der of two associations and borrow
in excess of $4,000? He may be-
come a member of two associations,
but the total amount of his loans
may not exceed $4,000.
IA. May an association operate
across state lines even if both states
are in the same bank district? No,
no association may designate terri
tory in two states, in which loans
can be made.
Is. In a general way, what sort
OF abstracts will be required? Must
they be prepared by bonded al
stractors, or is this matter for the
judgment of the land bank officials?
1t is a matter for the federal land
banks to determine. Any abstract
of title sanctioned by ordinary sound
business usage in the community will
be sufficient under this act. The
federal land bank will recognize any
system of the title registration ap-
proved by the law of the state in
which the land is located.
Yours truly,
w. w. Flanagan,
Secretary of the Farm Loan Board.