The Record-courier. [volume] (Gardnerville, Nev.) 1904-current, 1922-11-03
Joint Stock Land Bank To
Extend Activity to Neuada

long terms OF years and at low rates
of interest, the present rate being
per cent.
All mortgages must be made on the
amortization plan. which means that
the amount Of the loan Is paid OF by
equal semi-annual installments of a
liked amount, which includes interest
and sufficient amount of the prin-
cipal 30 that at the end Of the period
for which the loan Is made the entire
debt. both principal and interest, will
have been completely wiped out. For
example, on loan of $1,000 made for
a period Of SO years at 6 per cent the
payment OF semi-annual installment
of ss5 will cover interest charges and
completely liquidate the loan at the
end of the period.
Under this plan the borrower es-
capes the annoyance. expense and
dangers always present under the old
way Of making mortgage loans, for
II the covenants Of the mortgage are
observed and the installment pay
ments are promptly made when due,
the question Of renewals or possible
foreclosure is eliminated.
No loan will be made without the
assurance that all installment pay
ments will be made as they become
due and 1t will be assumed that these
payments will be derived from the
operation Of the property mortgaged.
On account Of the long term and
the conditions under which such loans
are made. the character, credit rating
or the immediate necessities OF the
applicant cannot be regarded a. the
determining factors. The present and
enduring value of the security must
be the basis of every loan.
The proceeds Of q loan may be
used for any agricultural develop
ment purposes. such as paying on
mortgages ON farm lands. improve
ments on property, purchase Of land.
equipment. livestock or other purposes
In the promotion of agriculture. but
such loan proceeds cannot be used
for purposes of speculation In enter
prises clearly outside OF the realm Of
agriculture.
All loans are made directly to the
borrower and no commissions can be
charged against him BY joint stock
land banks or by any agent or repre-
sentative. He must. however. bear
the expense incident TO the appraisal
Of his property and the determination
Of title. This expense. however. will
be relatively very small and will
rarely exceed one-half OF per cent
of the amount OF the loan. This Is
not continuing charge made each
year. but when paid is paid forever.
The borrower Is not required to
purchase stock in any Of these banks,
to join any association, nor to incur
any other obligation whatsoever be-
yond that to the Joint Stock Land
Bank from which his loan Is secured,
and 1t is not required that he live on
or personally operate the property
mortgaged.
On approved farm and ranch prop
erty the bank will loan SO per cent Of
the land value plus 20 per cent Of the
value of the insured improvements.
such values to be determined by Fed
eral appraisers and the Loan Com
mittee Of the bank.
Each application must be accom-
panied by fee of $40 as an evidence
of good faith. II the loan Is not con-
sidered this fee will be returned to
the applicant. II after appraisal Is
made the application is rejected. the
fee will be retained to apply on the
expense Of the appraisal. II the loan
is made the fee will be credited to
the applicant as part payment Of the
loan expense.
A loan Of $1,000 at six per cent in
terest is repayable in 20 years by
means OF forty semi-annual INSTALL
ments Of $43.26 each. which includes
interest and part Of the principal
The mortgage debt Is thus extinguish-
ed without additional payments. To
arrive at the amount required for
larger loans. multiply these figures
by the number Of $1,000 units in the
larger loan. As an illustration. the
semi-annual payments on a $4,000
loan woold be ten times 1926. or
$432.60.