The Marietta journal. (Marietta, Ga.) 1918-1944, 1922-10-26
TWO LOCAL BANKS CORES
PONDENT OF LOAN SYSTEM
Continued fromm Page u

Inc Atlanta JOINT Stock Land
Bank is operated under government
supervision, the government furnish
ing fiye-sixths of the capital for the
loans and appraises the farms for
the loan values.
Farmers wishing to take advan-
tage of this loan system can get
full information by calling at the
First National Bank or the Mer-
chants & Farmers Bank at Marietta.
Below is some information that will
be of interest:
THE ATLANTA JOINT LAND
BANK is an Institution chartered
under the provisions of an Act of
Congress known as the Federal
Farm of Georgia and Alabama.
LOANS ARE NOT RESTRICTED
to actual farmers who live on their
farms. but will be made to both ac-
tual farmers and farm owners who are
engaged in some other business or
profession. All loans, however, must
be secured by first mortgages on
farm lands, and the proceeds of the
loans must be used for some purpose
within the spirit of the law; that is,
having for its ultimate object the pro-
motion of agriculture. Nc loans are
made to spectators.
LOANS ARE MADE ON THE
AMORTIZATION PLAN under
which the entire loan, both interest
and principal are paid by fixed
number of equal semi-annual pay
ments. The interest rate is $50 and
the loans are made for a period Of
39 years. The seni-annual pay
ments required to fully iquidate a
loan Of 100000 in this period of
time is only $4,000.
It may not at first thought, seem
reasonable that payments of only
one ger cent each year over the in
terest rate will entirely cancel
loan in 80 years, but careful ex-
amination viii prove this to be
fact. A part of each amortization
payment is credited on the principal
Of the loan and interest calculated
and charged every six months on
only the net balance due on princi-
pal. To amortize debt is to pay
it off through a series of regular
small payments.
All the advantages of short term
loan are included in our loans, as
it is provided that on any payment
date after the loan has been in force
for FIVE years, the borrower may, if
he wishes, either pay the balance due
and secure the release Of the mort
gage and the return of his abstract
title and cancelled note; or an adj
dltlonal payment may be made in
such amount as shall be equal to one
or more of the semi-annual payments
on the principal. This will not re-
duce the amount of each installmenh
but will discharge the principal sum
at an earlier date by reducing the
percentage of each installment to be
applied to payment of the interest
and increasing the percentage of each
installment to be applied to the pay
ment of the principal.
The amount we can loan on a farm
is restricted by law to not ever SO
per cent Of the appraised value of
the land, exclusive of improvements
plus not over 20 per cent of the
appraised value of the permanent, in.
surable improvements, as ascertaineC
by the Federal Appraiser.
We cannot make loan unless {
fCvaroable report is made by The
Federal Appraiser, nor can we lenC
more than is recommended by tn,
appraiser-we may lend less. w,
will make loans only in multiples o.
$4,000, in amounts ranging from
$Z,OOO.00 to SIS, 100000.
No commission is charged, nor d,
we permit any of our representative
to charge a commission for procur
ing loans through the Atlanta join
Stock Land Bank. The Farm LOAF
Act only authorized the Joint Stool
Land Banks to charge a REASONABLE
fee to cover the cost Of appraisin,
the farm and examining the appli
cant's abstract of title. An initia
fee of $4,000 must accompany eael
apphcatiOn as evidence of the goo,
faith of the applicant and part pay
ment in advance of the cost of ap
praisal and determination of title.