Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1922-11-08

example, on loan of $1,000 made for
, a period of 80 years at 6 per cent the
payment of semi-annual installemnt
of $35 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 dan
gers always present unlcr the old way
OF making mortgage loans, for if the
covenants of the mortgage are OBJ
served and the instalments prompt
ly made when due, the question of re-
| newals or possible foreclosure is then
eliminated
No loan will be made without the
assurance that all instalment pay
lnents will be made as they become
due and it will be assumed that these
payments will be derived from the
operation of the property mortgagcd.
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 as the
determining factors. The present and
enduring value Of the security must be
the basis of every loan.
The proceeds of loan may be
used for any agricultural development
purposes, such as paying off mort
cages on farm lands, improvements on
property, purchase of land, equipment
livestock or other purposes in the
promotion of agriculture but such
loan proceeds cannot be used for the
purposes of speculation in enterprises
clearly outside Of the rankoof agricul-
ture.
All loans arc 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 small and will rarely ex-
ceed onc-half Of ! per cent of the
amount of the loan. This is not a
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 it is not required that he live on
or personally operate the property
mortgaged.
On approved farm and ranch prop
erty the bank will loan 50 per cent Of
the value of the land value plus 20 per
cent of the value of the insured i'm
provements. such values to be deter
mined by Federal appraisers and the
Loan Committee of the bank.
Each application must be accom-
panied by fee of $50 as an evidence
of good faith 1t the loan is not con-
sidercd this fee will be returned
to the applicant. If after appraisal
is made the application is rejected, the
fee will be retained to apply on the ex-
pense of the appraisal. If 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
tcrest 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 extinguisl-
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 illstration. the
| semi-annual payments on $l00W
loan would be ten times $4326, OF
ls432.6o.