Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-11-11
BY DIR. ANDREW M. SOULE

is called. Application is made to the
Federal Loan bank for the loan. The
temporary officers are elected. The
law requires that five directors be
chosen. The members are required
to subscribe for stock, and each
member has one vote for each share
of stock subscribed for in the as
ISOLATION up to twenty shares. The
directors should elect a president,
a president, a secretary-treas-
urer, and a loan committee Of three
must be appointed. The directors
are not allowed to be members of
the loan committee. When the APP
plications for loans and the articles
of association are forwarded to the
Federal Land bank, an appraiser
will investigate the solvency and
character of the application. Upon
receipt of his report, the bank de-
cides whether the local association
shall be granted a charter. If the
recommendation is favorable, the
necessary papers are sent to the
Federal Farm Loan Board at
Wash ,ngton, d. c.
On January i, 1917 the federal
farm loan board defined the terms
actual farmer" Joint mortgage"
and partners, as follows:
Actual Farmer-An actual farm
er is one who conducts the farm and
directs it's entire operation, cultivat.
ing the same with his own hands
or by means Of hired labor. An
owner, to borrow under the farm
loan act, must be responsible in
every way, financially and other.
wise, for the cultivation of his land
Joint Mortgag e-When a husband
and wife execute a joint mortgage,
one should give the other power of
attorney to be his or her representa-
tive in the farm loan association.
Where husband and wife sign the
mortgage in this way, the one IN
whose name the title stands should
be the one designated to join the as
ISOLATION y
Partners - The board has ruled
that partners in operating a farm
may borrow if one or more are farm
ers and are engaged in the cultiva-
ton Of the land mortgaged. But
partners must join severally in exc
cutting the mortgage on the land
and all should give to one the au-
thority to represent the others in
the farm loan association. Only
one member of the partnership can
become a member of the associa-
ton
When the association has been es-
tablished, the landowners, or those
desiring to purchase farm land, may
become a member if accepted by a
tWo-thlrds vote of the board of d.
rectors. He will have to satisfy all
the other requirements as to his
loan, haV his land title inspected
and his solvency determined by an
appraiser as described above. Loans
are only made to farmers on first
mortgages on farm lands. The pur-
poses for which a farmer may use
the proceeds Of a loan are defined as
follows:
ITO provide for the purchase Of
land for agricultural uses.
Ito provide for the purchase of
equipment, fertilizers and live stock
necessary for the proper and reason,
able operation of the mortgaged
farm. The term equipment to be
defined by the federal farm loan
board.
ITO provide buildings and for tbs
Improvement Of farm lands. The
term Improvement to be defined by
the federal farm loan board.
To Iquidate indebtedness of the
owner of the land mortgaged, exist
.ng at the time of the organization
of the first local farm loan asso-
cation established in or for the coun.
ty in which the land mortgaged Is
situated, or Indebtedness subsequent
~ incurred for purposes mentioned
in this section
The federal farm loan board. on
June 1, 1917, defined the words
equipment" and Improvement"
thus:
equipment - Under the term
equipment may be included the i'm.
PIGMENTS needed in the conduct of q
arm to facilitate it's operation. 1t
might consist of teams, as we'll as
machinery, tools, and like articles"
lmprovements-Under this term
S included anything in the form of
peneflc1al structure, or any useful,
permanent physical change tending
10 increase productive value, such
as clearing, thing, draining, fencing,
building"
Farmers may borrow from 81 .OlO
up to $4,000 through the federal
land bank. In no case can the
amount borrowed exceed SO per cent
OF the appraised value of the farm,
twenty per cent OF the permanent
insured improvements may be in
Guided. Interest rates vary from :
10 per cent. They are higher on
account of war conditions than was
anticipated when the law was orig
lnally enacted. No doubt interest
rates will be adjusted in favor of the
borrowers as conditions become more
normal. The costs of securing a loan
are not high, considering the benefits
which accrue to the beneficiaries IN
DER this act. Loans may be made
ranging in maturity from five to
forty years, and all loans are payable
on the amortization plan. The adj
vantages of borrowing through the
agency of the farm loan bank has
been succinctly set forth by the Of
ficers Of this organization in the ap-
pended statement.
1. 1t enables the farmer to borrow
for agricultural purposes SO per cent
Of the appraised value of his lands,
and 20 per cent Of the permanent
insured improvements, provided this
amount is not less than 500 nor
more than $4,000.
2. The farmer gets this money at
a lower rate of interest than would
be probable through any other or.
ganization, especially in a new coun.
try where investment funds are
scarce.
8. The length Of term and the op-
tional privilege of payment in part
or in full after five years are
unequaled by any other loaning
agency.
4. 1t gives the farmer the privilege