Oxford eagle. (Oxford, Lafayette Co., Miss.) 1876-current, 1921-03-17

ISSC al u ClelT COIIenClOHS thu
clears the way for the Congress to
further liberalize the law and en-
large its usefulness to the agricul-
tural interests of the country"
/ their charters and begin doing bust
ness.
u. May any but farmers and land
OwAers JON tne national farm loan
association!
"A. Yes, prospective farmers who
are about to purchase land Tor then
own use may also join and tenants
or farm iaborers who are about to
purchase land. They must indicate
IN their applications what land they
expect to come into possession of.
Y. Is there any limit to the num-
bier that may be members!
A. No; every farmer in the terri
tory OF the association may be adj
mitted.
Z. How is the real estate specu-
lator regarded by the law?
| A. None but actual farmers or
prospective farmers may borrow and
only thoes whom the association is
willing to admit to membership.
q. What is the maximum ard min
imum amount of loans?
A. No farmer may borrow more
than $4,000 nor less than 500. No
national farm loan association may
start with less than $4,000 in loans.
@. Suppose l own farm worth
only $40 an acre because it needs
drainage or clearing. Suppose !
underdrain or clear it and make it
worth $40 an acre. May l double
my loan.
A. If you double the appraised
value you may double the loan.
@. Suppose prospective borrow
er cannot raise the so per cent of
the purchase price of land; would he
be permitted to execute second
mortgage to come due while the
amortized loan was being paid off?
Yes. With a loag time amor
TIED loan it ought to be easier at
present to place second mortgage,
because the first mortgage is gradu-
ally reduced every year, and the re-
quired payments Hereunder may be
made so small as not to menace the
ultimate security of the second
mortgage. But the law does not al
low the Federal land banks to lend
on second mortgages. The borrower
must find some other lender to carry
the second mortgage.
@. How can l get the benefits of
this system if | live out in a locality
where it is impossible to get 10 or
more persons to form an association
A. If no local association is form
ed in your section after the law has
been in effect one year-that is, by
July II, 1917-the Federal land
bank is empowered to appoint as its
agent in your territory any bank OF
/ trust company or mortgage company
organized under State charter. This
bank or company may make the loan
for you under the Federal farm loan
system, providing you subscribe to
the stock of the Federal land bank
to the amount of per cent of the
face value of your loan. The bank
or company acts as agent and guar
antees your loan. For so doing it is
allowed a commission not exceeding
one-half per cent per annum on the
unpaid principal of the loan.
@. What is the object of limiting
the size of the loan?
A. The act is designed to benefit
the actual farmer, not the dealer oil
| SPECTATOR. A limit on the size OF
the loans prevents the use Of this
act for the purpose of land specula
ton and monopoly.
@. Who passes on the value of the
land offered as security?
A. The local national farm loa-
association has loan committee Of
three members for this purpose, who
must agree upon the valuations
Then after the report of the loar
committee has been sent with the ap
plication for loans of the Federal lane
bank, the land will be visited and ap
praised by an appraiser appointed by
the Federal Farm Loan Board.
@. What percentage of the value
of the security may be borrowed?
| A. Up to so per cent of the ap
praised value of the land plus 20 pei
cent of the appraised value of the
permanent insured improvements
That is, if your land is appraised a
SIS 1000, you would be entitled t.
borrow $500; and if your improve
ments are worth $4,000, you coult
borrow 81 900 more, or $500 in all
G. For what purpose may thu
money borrowed be expended?
| A. The money may be spent tt
discharge existing indebtedness; fol
the purchase of land, and for the
purpose specified in the law, such a:
the purchase of live stock, or for any
kind of productive improvements
for fertilizer, for needed buildings
drainage, and for proper equip
ment.
@. What is the object of these lin
itatiOns?
| A. It is the policy of the law t.
develop agriculture and benefit thu
farm as we'll as the farmer
G. How long may these loans run
| A. From to 40 years, at the OPP
ton of the borrower.
@. A payment of the interest an,
per cent per year applied on tn
principal will wipe it out in how
many years?
A. In about sc years.
@. What term of years is recon-
, mended by the Farm Loan Board?