The star-progress. (Opelousas, La.) 1917-1921, 1920-02-07
SALIENT FEATURES OF THE
FARM LOAN SYSTEM, WITH
SPECIAL REFERENCE TO
THE ST. LANDRY Ma
TIONAL FARM LOAN

FARM LOAN - EHB va "A
SPECIAL REFERENCE TO
THE ST. LANDRY MA
TIONAL FARM LOAN
ASSOCIATION
First-Interest rate only five and
one-half per cent.
Second-Term, five to forty years.
After five years the loan may be paid
in full lor in part. Before five years
the loan may be paid up, but a little
extra interest is charged namely, one
per cent per annum for the unexpired
part of the five years on the amount
vet due at time of payment. Most
loans are made for thirty-five years,
which is the term advised. On
term of thirty-five years, the annual
payment is sixty-five dollars on each
thousand dollars borrowed. This six
tv-fiye dollar payment includes the
interest and a part Of the principal,
and automatically pays the loan IN
full in the thirty-five years.
Third-Stock. Each borrower
must become member of National
Farm Loan Association, and take i've
per cent of his loan in stock of the
Association. The Association then
takes the same amount of stock in
the Federal Land Bank. The Land
Bank may pay dividends to the Asso-
Citations. and the Associations may
nav dividends to their members. This
stock is responsible for the debts Of
the Associations.
Fourth Endorsements. The Farm
Loan Association, through its secre-
Itary-treasurer, endorses each mort
gage of its members, and therefore IS
responsible for the payment of the
mortgage to the Federal Land Bank.
,Fifth-Security Loans may be
made up to fifty per cent of the value
of the land, and twenty per cent OF
the value of the insured buildings.
These values are set for the Assocla-
ton by it's loan committee, and Tor
the land bank by its appraiser. A re-
cent purchase price is generally a
,good indication of the actual value
of the property.
Sixth-The limit that any one per-
son may borrow from the Federal
Land Bank is ten Thousand dollars.
The minimum loan is one hundred
dollars. Naturally, the expenses IN
making a small loan are much larger
in proportion than in making large
one. The usual expense, including
the abstract, notary, recordation, etc
is about two per cent of the loan
Seventh-The method of proceed
ure in making a loan through the St
Landry National Farm Loan Associ-
alton, in brief, is as follows: The
would-be borrower files an applica-
ton with the secretary de.
posting at the same time the initial
| fees, which go to defray the expenses
of appraisal etc, and the property is
then examined by the loan committee
which reports to the Board Of Direc-
tors, who then decide to what extent
the Association is willing to endorse
the mortgage of the applicant. The ap
ulication is then sent to the Fedora
Land Bank of New Orleans, for IN
spection and correction and returned
to the local OBSERVATION-DISCLOSURES tt
hold for the federal appraiser, Wnt
then examines the property Offered
and reports to the Land Bank. Tht
Land Bank makes its decision upoI
this report and the action OF the
Board of Directors of the local AS
ISOLATION, as to how much it is will
ing to lend on the property Offered
as security, which amount is never
more than the Association is willing
to endorse for, and may be less. Tit
abstract must then be presented ant
examined by the local attorney, whit
reports to the Land Bank. If TIT
title is found to be all right, tn
mortgage papers are sent out for tn
applicant to sign, together with tn
secretary-treasurer of the loca
Association, and a certified copy O
the recorded mortgage is sent to tn
Bank, which then issues its cheek
and the money is available for tn
borrower.
Eighth-Only a first mortgage cal
be held by the Federal Land Bank
therefore any other mortgages rest
ing against the property must 3
cleared up before the money is pai
over to the applicant, or this none,
may be used to pay off the old mort
cages or other encumbrances.
Ninth-Purpose of loans. None,
, borrowed from the Land Bank ma,
be used for general purposes on tn
, farm, such as building, repairing
clearing, fencing and other improve
ments, buying livestock, implements
fertilizer, ETC., or to buy land or t
pay off indebtedness.
Tenth-Transfers Property mori
gagged to the Federal Land Bank ma
be sold, and it is not the purpose o
the Land Bank or the Association t
to hinder the free transfer of proI
erty, but each purchaser is require
| to assume the same obligations as til
original member, and assume tn
stock and membership in the Assoc
! alton, for which transfer of stock an
} membership, a small fee is charge
to defray the expense and trouble il
} volved. The method of transfer
for the purchaser to apply for sue
} transfer of stock and membership j
the Association to the secretary
D treasurer, who reports to the Boar
of Directors, which acts upon the al
pIication. This is all then referre
D to the Land Bank, which has the fins
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