The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-03-03

with the list Of proposed members,
the articles OF association must be
signed and acknowledged which. with
the report Ct the loan committee, ln..st
be sent to the Federal land bank. Al.
atffdavit must be signed and ack-
nowledged by the secretary-treasurer,
whose residence and post office ad-
dress must also be stated On tho af-
Edavit. This affidavit. thus signed
and acknowledged, will set forth that
each subscriber is the owner of farm
land, or is about to become the owner
or farm land qualified under the Farm
Loan Act as the basis for a mortgage
loan. That is, a person in the COM
munity may not be in actual possess
sion OF a farm, but expects to be in a
short time, by purchase, the owner OF
the particular farm described in his
applications: in that case he could le-
gaAy joint the association and become
member. The affidavit should also
state that the desired loans added to-
sether amount to $4,000 or more.
The national farm lean associations
are to be organized and run by farm
ers and for farmers. Persons not farm
ers need not apply for membership:
they could not legally be admitted,
For the laws says that no one .xccpt
farmers shall be members and nc. one
except members can borrow. The low
est sum any farmer can borrow is
500; the highest is $4,000. These, are
the limits fixed by law.
The associations will grow by the
admission of new members. After the
affidavit. showing that the loans
amount tc' $4,000 or more. has been
sent to the land bank and the farm
loan association has become corr
porate body through charter being
granted to 1t by tha Federal Farm
Loan Board. a farmer who wants to
borrow 800 only can be admitted to
membership. In fact, there is no limit
to the growth Of the association after
the first ten or mere have become a
chartered association. Any farmer may
he admitted to membership who wants
to borrow on farm mortgage any sum
ranging from 800 to $4,000. In this
way the national farm loan associa-
tions will grow in numbers.
But farmers can not join without
cuying shares in their association. The
value of the shares is fixed at the low
price of IS each. Every farmer who
becomes a member Of q national farm
loan association also becomes Il hcr-
rover and SHAREHOLDER at the same
time. For the low says that T.. must
subscribe for stock to the Amount #
5 per cent of his desired loaa. II he
wants to borrow 500, he must take
one share of stock: if 5000, two shares
If 81 900. 10 shares; and il S:t nNo, loo
SHARES.
The borrower may nay in cas-, for
his stock at the time he applies T. T.
membership, or he may wait until his
lean is received and then pay for his
stock from the loan. He may. it he
wishes. even add the cost of his stock
to the amount CT his loan. providins
this does not Increase his loan abov..
so per cent Of the appraised value of
the land and 20 per cent of the per-
manent improvements thereon. .;ut
the owner must Keep the buildings i'll.
sured.
This plan of buying stock makes tne
national farm loan associations coop.
erative in character. When the farmer
borrOws money. the shares of stock he
has to buy are held by the association
as part security for his loan. But if
the association prospers, dividends on
his stock must be paid tc' the owner.
When his debt is paid off. the stock
owned by the borrower is Cancelled.
That is. il a farmer has held two
shares of stock he is paid $40: the
stock is Cancelled, and the farmer is
no longer Il member of the assC ella ion.
The payment of debt automatically
removes farmer from membership In
a national farm loan association.
| Each farmer is liable for the debts
OF his association TO twice the par
value of the stock he owns. One half
of this liability has already been paid
| as represented by his shares Of stock
held by the association. So that, in
case of the failure Of an association, a
member who held one share would be
liable for only IS more. Thus the
members take little risk and reap all
the benefits Of cooperative mortgage
credit.
] The money the farmers pay their as
ISOLATION for stock is turned over te
the federal land bank to buy stock in
that bank for the association. The
cash may or may not be sent In with
the subscription for stock. If cash il
| sent, the secretary-treasurer of tn.
association must procure it from tn.
prospective borrowers. Each farme,
pays his share according to the amount
Of his loan. Fer example. if one mem
ber wants to borrow $500 and anothe,
wants to borrow $1,000. the first on,
has to pay $25 and the second one $50
The subscription price Of $1,000 for tn,
land bank stock is provided in thi
way.
II for any reason. however. any o
all Of the loans should not be granite,
BY the land bank. the money paid /,
advance on account CT stock subscrip
ttfons would be refunded. But the casl
need not be sent in advance with tn
subscription made by the secretary
treasurer When the loans are granite,
BY the land bank. the amount OF tn
subscription to the stock may be de
Quoted from the tctal amount OF tn
loans. In such case the balance
forwarded to the sccretary.treasure
OF the association. That Ia. II tn
loans total $4,000. the secretary
treasurer would receive $4,000. II
4 A.