The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1917-03-29
REGULATIONS GOVERN
ING RURAL CREDIT ACT
Heppner. March 26, 1917.

Editor Gazette-Times:
The State Land Board is now ready
to receive applications for loans un-
der the Rural Credit Amendment of |
the state constitution and the act of
the recent legislature providing the
means for carrying the amendment in
to effect. l am handing you here
with the regulations governing such
loans in the hope that you will give
currency to same through your paper.
Who Can Borrow.
Any land owner who operates and |
occupies the lands offered as security !
is q qualified borrower. Persons
deemed to answer the above require
ments are as follows:
| (a) When the applicant lives on
the land offered as security and
where such land forms single hold
ing, and where such applicant mana
ges the land himself, performing the
labor thereon with the assistance of
his family or hired help.
(b) When the land offered as Sc
curity is made up of noncontiguous
holdings, on one of which applicant
lives and from which he operates the
different holdings as outlined in sub
division (a), the noncontiguous hold
ings to be not more than five miles
from the one on which applicant
lives.
| (c) Where on account of lack of
water or any other condition which
in the judgment of the Board makes
the land offered as security unfit for
a rural home. but where the mana
cement and work are performed as
provided in subdivision (a).
III I'D Where for any reason the
applicant must be absent from the
land offered as security not exceed
ing nine months each year, but main
tains his legal residence on said land
and operates the same as provided in
subdivision (a).
For What Purposes Loans Will Be
Made.
Loans will be made Dr the follow
ing purposes only: To pay for lands
purchased, to purchase livestock and
oher equipment, for making improve
ments, which in the judgement of the
Board will increase the productivity
of the lands offered or add to their
value as farm home in degree to
justify the expenditure, or to satisfy
membranes upon such lands, which
in the judgment of the board were
incurred or assumed by the applicant
for the foregoing purposes.
Security.
Loans will be made only on first
mortgage liens on farm lands.
Amount Of Loan.
| Loans to any person will be for not
less than 100000 nor for more than
/ 100000. All loans will be limited
l to fifty per cent of the actual cash
value of the security offered ex-
elusive of perishable improvements
and in no case will more than $4,000
per acre be loaned on any land. In
: arriving at the value of lands offered
= as security, water rights appurtenant
to the land will be taken into con-
sideration.
ii Rate of Interest.
III Interest on loans will be five per
cent. If however any issue of bonds
sold to procure the loan fund shall
sell for less than par, the interest
rate on loans from the proceeds of
such issue of bonds may be increased
accordingly up to one per cent ad-
ditional.
ii Time of Loan.
Loans will be made for not less
| than ten years nor for more than
thirty-six years. Payments of $4,000
or any multiple thereof, in addition
. to the amount due under the mort
: gage, may be made at any amortiza-
tion date.
\ Amount of Payments.
Payments will be for the same
" amount in each year of the time loar
has to run and the amount of sucf
payments will pay the loan principa
and interest within such time.
excess payments are made, such pay
ments will not decrease the amoun
of subsequent payments, but will
shorten the time the loan runs.
Additional Loans.
1. Purpose for which loan is de
sired must be clearly stated in thu
application and become part of thu
mortgage contract.
2. Repayment Of the loan will b.
required on six months notice,
moneys borrowed are applied to pur
-uu~c 4klnr than %hNOo horaip H. fo ~