Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1917-03-02
ANSWERS QUESTIONS
ABOUT FARM LOANS
FEDERAL BOARD EXPLAINS VA.
RIOCS FEATURES OF NEW
SYSTEM.

below are reproduced number
of questions most commonly asked
in letters coming to the Federal
Farm Loan Board, together with the
answers furnished by direction of
the board:
~. What constitutes an actual
farmer?
An actual farmer is one who con-
ducts the farm and directs its entire
operation, cultivating the same with
his own hands, or by means Of hired
labor. An owner, to borrow under
the farm loan act, must be respon-
sible in every way, financially and
otherwise, for the cultivation of his
land.
ca What Is the meaning of
equipment?
Equipment consists of the imple-
ments needed in the conduct of
farm to facilitate in its operation.
1t might consist Of teams as we'll as
provement"
60 What is the meaning of elm
machinery tools and like articles.
Anything in the form of benefi-
cial structure, or any useful, perma-
nent physical change tending to in
crease productive value, such as
clearing. thing, draining, fencing,
buildings, etc.
"a Has a farm loan association
the right to appoint an attorney to
draw up abstracts and pay him out
of its official funds or should the
members Of the association club to-
gether as individuals and have this
done?
Each borrower is required to fur
nish his own abstract and the appli-
cant must stand the expense of pre-
pairing this abstract. An association
has no right to employ any of its cor
porate funds to pay for the prepara-
ton of abstracts for its members.
This must be an Individual charge,
and II members of an association
club together to have this work
jointly done they must do 1t as indi-
viduals and not as an association.
Each borrower is free to make his
own choice in the selection Of an at
torney or abstractor.
(5) What will be the rate Of in
terest?
Not exceeding per cent. The
exact rate cannot yet be told; per
cent more than the interest rate farm
loan bonds will bear.
CO.. May members Of partner
ship borrow?
Yes, II one or both are farmers
and engaged In the cultivation of
the land mortgaged. Partners must
join severally in executing the mort
gage and one should give the other
authority to represent him in the
farm loan association, as only one
can have membership.
CD Will the federal land banks
make any charge for examination of
abstracts of title?
The examination of abstracts,
when furnished, will be made by the
banks general attorney at its office.
and for this examination no charge
will be made. In districts where alb
! stracts are not obtainable except by
examination Of the records, the bor-
rover will have to bear the cost of
such examinations.
(8) When husband and wife ex-
ecute joint mortgage should one
give the other power of attorney to
be representative in the farm loan as
ISOLATION?
Both husband and wife should
sign the mortgage, but the one in
whose name the title stands should
be the member of the association.
| (9) What is the basis for apprais-
ing lands?
The appraisement Of q farm
should represent the best judgment
Of the members of the loan commit
tee as to the value of the land In
question, the principal factor being
the productivity of the land when
used for agricultural purposes. but
taking also into confederation the
STABILITY Of the land and prevailing
land prices In that community.
(10) What will be the size of the
bond Of the secretarystreasurer?
This will depend upon the size Of
the association. The bond need not
be large enough to cover the aggre-
gate amount Ut money borrowed by
the members Of the association, be-
cause this money will be transmitted
, in such a way as never to be in the
exclusive control of the secretary
treasurer. It should be large enough
merely to cover the interest and
amortization payments, called the in
stallments. as we'll as the deposits
likelysto be in the hands of the Sec
retary-treasurrr at any one time.
(11) What Is the judgment Of the
farm loan board as to compensation
for the loan committee?
This depends so much on the size
of the association that no fixed rule
can be made. Since this is a COOP
erative banking system, the farm
loan board desires that the work, as
far as possible, be done without ex-
pense. The board believes that in
small association 1t will not be neces-
sary to pay the loan committee any
fees. The board believes that in very
few cases will 1t be necessary to pay
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