, 1921-06-09
How To Secure Il Farm Loan From or
Through the Farm Loan Board
Information for Borrowers.


The Wyoming Farm Loan System
provides for the farmer an oppurtun-
ity to enjoy the same credit advan-
tages and low interest rates that have
long been afforded the railroads. large
industrial corporations and other lines
of business. and enables him to finance
his operations over II long period of
time without the necessity of repeated
borrowing. Let it be clearly under
stood that the farmer borrowS his
money direct from the State of Wyo-
ming. The State of Wyoming. by its
Farm Loan Act, is appropriating n
part of the permanent school funds of
the State for the use of the farmer.
The income from the operation of the
law goes to the School Income Fund.
This system was organized for the
purpose of giving to the farmers of
Wyoming, cheap money and ON long
time to help improve the conditions of
our present residents and to aid in
the settling up Of the State. The
amount provided by the Legislature of
One Million Dollars will undoubtedly
be increased by the neXt Legislature. if
the law proves to he a success. and the
time may very well come when Wyom-
ing may do as other western states
navy AAplN. ISSUE anu blSltDSt OF Iilnl
loan bonds and loan the proceeds to its
farmers.
Plan of the Farm Loan System.
There is nothing complicated about
the Farm Loan Act. 1t provides a
simple plan through which the borrow
ing farmer may secure a loan on ade-
quate security at low interest rates for
a long term without paying commis-
sions or being burdened with renewals
of the loan.
This is accomplished by what is
known as the amortization plan. Amor
tizatton means the payment of fixed
and regular installments which nav
both principal and interest i'm a given
term of years. The addition of a small
amount to the yearly interest payment
each time reduces the principal of
the debt with each successive payment
so that h borrower is paying interest
on "A constantly decreasing principal
and when the last payment is made
the debt is completely discharged.
Neither the borrower II o the Board
can fix the rate of interest for this is
provided IN the Act ut six per cent. pei
annum.
The borrower has the privilege of
paying off his loan at any payment
date. in whole or in part. after five
years from the date of the loan.
Requirements for a Loan.
1. The applicant must he an actual
resident of the State of Wyoming and
the owner or prospective owner of farm
land offered as security for the loan,
loans to be made on first mortgage
only running to the Wyoming Farm
Loan Board.
,. The applicant must be a person
who is at the time. or shortly to be.
come. engaged in the cultivation and
development OF h farm land mort
gagged.
3. The land offered for security will
he appraised upon the basis of its aCri.
cultural or ranch value. The wyoming
Farm Loan Board is authorized to
loan a maximum Of forty per e of
the appraised value of the land. OK
elusive of the value of the improve
ments, but. in no case, under the pro-
visions Of the Act. can a loan be made
for n total amount in excess of sixty
per cent OF the average assessed valua-
ton OF the land for the three preceding
years. as certified by the County AS
SCISSOR for the County in which the
land is situated.
4. Under the law, the applicant must
agree that the money borrowed will be
applied to certain definite uses and IL
must be so applied as follows:
(a) To provide for the purchase of
farm lands. tb) To provide for the
purchase of equipment, fertilizers. and
1--we stock necessary for the proper and
reasonable operation of the mortgaged
land, the term equipment" TO be de
fined by the Farm Loan Board. (c)
To provide for buildings and other i'm
provements on farm lands. the term
improvements to be defined by the
Farm Loan Board. I'D To liquidate
the indebtedness of the owner of the
land m%ortgaged existing at the time
of the passage of this Act. or indebt-
edness subsequently incurred fol the
purpose heretofore mentioned.
.. The mount loaned 10 n one
borrower may not exceed / minimum
sum of Five Thousand Dollars
| (G5nOn 0ll aud M Loo, 49,. - -r