The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1919-07-18
The Farm Loan Act

created by Act 225 OF the Territorial
Legislature, 1919, will begin its duties
on July LIST, and applications for
loans may be filed on and after that
date.
The following summary will give
a general idea of the provisions of
the Act, and explain the purposes
and conditions. Persons engaged in
agriculture who are interested in the
matter, should write TO the Secretary
Farm Loan Board of Hawaii, Homo
lulu, T. H., for further information.
A pamphlet setting forth the details
Of the Act may be secured by apply.
ing to the tax assessor, deputy tax
assessor, or sub-land agent of each
district.
Purposes Of The Farm Loan Act
Thefull title of the Act reads" An
Act to Encourage the Establishment
of a Rural Population by Providing
Loans to Assist Agricultural Develop
ment."
The Act further stipulates hat it's
purpose is to aid practical farmers,
persons who derive the whole or a
part of their living from active man
agement of, or participation in, farm
hereunder general farming, cane
growing, fruit growing, grazing, dairy
ing, the handling of any form of live
stock or poultry, and any other form
OF agricultural development.
1t also specifies that a borrower
must be a citizen of the United
States of America, and must have
been a resident of the Territory of
Hawaii for at least three (3) years
next preceding the date of the appli-
cation for a loan. Its purpose IS,
therefore, to assist American citizens
resident in the Territory of Hawaii,
who are bona fide residents on the
land.
The purposes for which loans may
be made are divided into three class
es:
Glass A. To provide for the pur-
chase of land for agricultural pur-
poses.
Glass 3. To provide buildings,
fences, and other permanent improve
ments, to provide for breaking up,
and planting and c%ultivating land,
and the purchase of fertilizers, seeds,
machinery, implements, and other
equipment necessary to the proper
cultivation of the land or other farm
ing operations, and the purchase of
livestock for working, breeding, or
f%attening purposes.
Glass c. To pay eff indebtedness
incurred for any of the, purposes
specified by the Act, or when relief
from indebtedness will aid the appli-
cant in his farming operations.
Conditions Under Which
Loans Are Made
All loans must be secured by first
mortgage.
All loans, except short time loans
in Glass B, must be repaid in semi
annual installments On an amortiza-
ton basis, in addition to the interest.
The amortization plan requires that
a certain sum on the principal, plus
the interest on the amount outstand-
ing, be paid every six months until
the principal is paid. For example,
if a man borrows Il thousand dol
lars for the purchase of farm land,
the repayment may be made fifty
dollars, plus the interest at six
months period. At the end of ten
years the principal would be. entirely
paid under this plan. Arrangements
may be made to pay the principal in
less than ten years.
Additional payments in sums not
less than twenty dollars (S20.O0), or
the whole amount of the principal,
may be paid on any regular install
ment date.
The rate of interest shall be six
per centum. $50, per annum, simple
interest.
No loan shall be made for less than
one hundred dollars 100000, or for
more than three thousand dollars,
C3,O00.00).
No loan shall exceed fifty per
centum 5000 Of the value of the
security offered.
All applications for loans up to
one thousand dollars, ($1000,O0),
must be accompanied by a fee of
one dollar (1.00), and all applications
for loans in excess of one thousand
dollars, GlOOO.OO) must be accom-
panied by a fee of two dollars $4,000.
All loans in Glass A must be re-
paid in not more than ten (1O) years.