The Dawson news. (Dawson, Ga.) 1889-current, 1921-03-22

will do a large business in this terri
tory. There has probably never been
time when the aid OF the federal
land bank will be received with as
much appreciation as at present.
The right to make loans by led
eral land bank is limited to the tol-
lowing purposes:
/. To provide for the purchase OF
land Tor agricultural purposes.
2. To provide for the purchase OF
equipment and live stock necessary
for the proper and reasonable opera
ton of the farm.
3. To provide buildings and for the
Improvement of farm lands.
/. To liquidate the Indebtedness OF
the owner of the land mortgage exist
ing at the time of the organization OF
the farm loan association.
The federal land bank, under this
act. is permitted to loan 50 per cent
OF the appraised value OF the land
mortgaged and 20 per cent Of the i'm
provements situated thereon.
The loan cannot be made tor pc
Rod of less than five years nor more
than fifty years, and no loan on
mortgage can be made under this law
at rate of interest exceeding per
cent per annum, exclusive OF amort1-
cation payments.
No person can avail himself OF this
act to borrow money from federal
land bank who is not at the time or
shortly to become engaged in the cul-
tivation OF the farm mortgaged.
The National Farm Loan AssoCia-
ton provided lor must be composed
OF not less than ten men in any COM
munity or county within federal land
bank district, who desire to secure
l6ans and who organize into what is
termed and classified by the act as
National Farm Loan Association.
When ten borrowers desire to or
ganize for the purpose OF creating
National Farm Loan Association they
shall in a general way specify in arti-
cles of agreement for what purpose
the association is formed, and the ter
ritory community or political sub
division within which it is to do bus
mess.
They draft what is termed articles
of agreement; send copy Of the
same to the Federal Land Bank OF
the district, accompanied by a sub
scription of stock in said federal land
bank amounting to per cent OF the
aggregate amount of the loans desir-
ed by men who organize the assOCla-
ton.
These ten men elect not less than
five directors from their membership,
and also select a secretary-treasurer.
The board then select from the ten
men who desire to organize a farm
loan association what is termed a loan
committee, which shall consist OF
three members. They forward their
applications and articles of agreement,
together with their subscriptions to
stock, to the federal land bank in that
district, which is located in Columbia,
S. c., for Georgia and the southeast.
The aggregate amount OF loans de
sired by the incorpOratOrs cannot be
less than $4,000
Then the Federal Land Bank shall
send an appraiser to investigate the
solvency and character OF the appl1-
cants and the value OF their land, and
upon receipt OF the report shall de-
termine whether or not in their Judg-
ment a charter shall be granted to the
ten men who desire to be mcorpOrat-
ed and shall forward all articles OF
agreement and the evidence submitted
to the Federal Farm Board at Wash
ington, with their recommendations.
If the recommendation is favorable,
then the Federal Farm Loan Board
shall thereupon grant a charter to the
ten applicants, designating the terri
tory in which the association may
make loans, and shall forward to said
applicants, through the Federal Land
Bank of that district, the charter.
Upon receipts of the charter author
izing the establishment of the Nation
al Farm Loan Association it would be
authorized and empowered to receive
from the Federal Land Bank OF the
district in which it is organized and
chartered to do business sums OF mon
ey to be loaned to its members who
organize the same