The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1919-08-01
Farm Loan Board
Rulings Important

ton by the board. In stating these
conditions plainly, the board has en-
phasized the practical value of the
statute.
In reaching the decision arrived at
he board has kept in mind the spirit
and intention of the law; the basic
principles of which are service and
helpfulness in a ~businesslike and
practical way.
Computing Amount OF Security
Allowing the amount of the propos
ed expenditure to be counted as addi-
tional security is an important ruling
ofshe board. If this were not allow
ed, only one-half the amount of avail
Abb security at the time of applica-
ton for a loan could be advanced to
begin any improvement or develop
ment. A new appraisal would have
to be made after the completion of
part of the work before more funds
could be granted.
Under this ruling a landholder who
a put up one thousand dollars as
security can borrow one thousand
dollars. In other words, he can Dor
row as much as he can offer in ac-
ceptable security, by giving a mort
gage on the improved property, pro-
vided always that the Farm Loan
Board approved the purposes for
which the expenditure is to be made.
Fixing Periods OF Payment
When loans are made payable in
semi-annual instruments, it is custom
airy to make the instruments payable
on June 90th and December 31st of
each year. When a oar is not TAX
en- out on these dates, the first pay
ment may be called for in less than
six months. BY computing the time
from the date of the mortgage, the
mortgagor is given the maximum time
on each payment, and he can often
arrange the time so that the payment
will fall due when he is best able to
!! 1Odh DOdlu huO
ruled that all payments on amortized
loans shall be made at periods of six
months from date of the mortgage.
Class 3 Loans Not Amortized
The repayment of loans at periods
of six months is often a great hard
ship. This is especially true of loans
made for the development of the land,
improvements, the purchase of ferti-
lizer, livestock, etc.
The landholder who is Just starting
work on his land is greatly hand
icapped, especially if he is planting
crops that require from eighteen
months to twenty-four months to ma
ture .
AT the end of six months the land
holder is poorer than he was at the
beginning; at twelve months he is
even worse off; at eighteen months it
is out of the question to ask for
money. If all applicants were held
to the six months payment, few home
steaders beginning work on the land
would be able to get any help from
the Farm Loan Act.
However, at the end of two years,
the farmer is usually able to make
a substantial payment on his loan,
and in many cases he is able to pay
the amount in full.
The Farm Loan Board has ruled
that all loans in Glass B.. may be
granted without applying the amorti-
cation plan. Glass b loans may be
granted or such periods of time, not
to exceed five years, as may be deem
ed safe and reasonable by the Farm
Loan Board.
In some cases, as when the lien is
on a crop, the period may be fixed at
two years, or for such a length of
time as may be necessary to mature
and harvest the crop, and to make
settlement for it. In other cases
term of three, four, or five years may
be granted. The purpose will be in
all cases to give the greatest posi-
BILE assistance without assuring I'M
necessary risk.
That this ruling will be to the ad-
vantage of the borrower, and especial
ly to the person who is not provided
with sufficient working capital, is
evident. There are many who will
avail themselves of the opportunities
provided by this important act who
could not do so if they were obliged
to make payments every six months.
Town Property Accepted AS Security
The Farm Loan Board has ruled
that where an applicant for a loan is
ohio IN offar town nrOnprtv aS Securi-