The twice-a-week Twin Falls times. (Twin Falls, Idaho) 1916-1918, 1917-01-16
NEW FEDERAL LOAN
BUREAU EXPLAINED
Frank r. Wilson Of the Farm Loan
Department Tells How To Proceed
To Borrow Money.

(By Frank r. Wilson, OF the FEEDER
al Farm Loan Bureau. Written for the
United Press)
WASHINGTON, Jan. 16-The right
to borrow under the Farm Loan act
is limited to farmers and prospective
farmers.
Farmers OF prospective farmers who
wish to borrow group themselves into
Farm Loan Associations, each associa-
ton being composed of ten or more
farmers, and each association start
ing with a minimum of at lest $4,000
of loans.
To join, a farmer merely makes ap-
plication to the ecretary-treasurer
Of the loan association in his com
munity. If none has been organized
he should get together the required
number of borrowers and organize an
association.
The Federal Farm Loan board at
Washington will furnish on applica-
ton, a blank form OF articles of as
sociation for such organizations. Then
the organizers meet and adopt these
articles and sign them and the ser
retary-treasurer makes affidavit there
to.
This association then elects five or
more directors and the directors then
elect a president, vice president, sec
retary-treasurer, and a loan commit
tee of three members.
AS soon as the Federal Land Bank
of that district is ready for business
it will provide this local association
with additional blanks including an APP
plication for a charter and blanks for
the loan committee to use in the work
of appraising the farms.
AS soon as the loan committee is
elected it may proceed to appraise
the farms upon which mortgages are
to be placed. It's report, which must
be unanimous, must accompany the
signed articles of association and be
filed with the Federal Land Bank of
that district
When this is done the appraiser of
the Federal Bank will come to inspect
the security offered and accept or re-
ject the report of the loan committee
No one farmer may borrow more
than $4,000 nor less than 500. No
National Farm Loan association NAV
start with aggregate loans less than
$4,000.
If John Smith. a farmer, desires to
bOA4OW RLOOO ne 4iftoLS III Tic olOtA
Of his local loan association one
twentieth OF this amount.
His association then invests this
money in the stock of the Federal
Land Bank, enabling it thus to in
| crease its capital so as to make an
! other loan of $4,000 to some other far
mer The borrower gets his invest
ment back when he pays off his loan,
or he may turn it in as the last pay
ment on his loan.
Farmers are required to form these
organizations so that they eventually
will control the Federal Lark Bank.
Each loan association votes in the
election of the directors of its Fed
eral Land Bank Each association has
loan committee which values the
land of it's members subject to the ap-
] prevail of the land bank appraiser and
, the Federal Land Bank. Each asso-
citation has a board Of directors which
has the power to exclude or admit
new members by a two-third's vote.
~ this local loan associa
ton that the farmers invest the mon
ey to be used for increasing the cap
ital stock Of the Federal Land Bank,
and this is how the farmer comes in
to possession of his own banking sys-
| tenn.
| Farmers are permitted to borrow
up to thirty per cent of the appraised
value Of their land and twenty per
cent OF the appraised value of the per-
manent insured improvements there
on.
It is not necessary for a borrower
to be an actual land owner when he
joins, but the landless man must use
the borrowed money to purchase land
which he intends to Immediately be-
gin farming.