The Devils Lake world., 1922-02-01
FARM loan DEPARTMENT Of
\. D. STATE BANK EXPLAINED

UUU W
The inventory Of the Farm Loan
Department dated November %, 1921
shows approximately two and Three
Quarter Million of Dollars of loans
closed by the former administration.
In addition thereto, the inventory
shows that there were on hand on
November %, 1921, applications for
loans aggregating more than Six and
a Quarter Millions of Dollars Of which
about One Million Nine Hundred
Thousand Dollars has been appraised
and approved, but not paid for lack
Of funds. Apparently there had been
no system Of allotments to counties
and the loans closed had been grouped
very largely in few counties. Many
of the APPLICATIONS approved had been
appraised and approved year or
more ago. During the interim i'm
portant changes have probably occur
el in the surrounding conditions in
many cases. These are some Of the
problems that were faced upon tax
ing charge Of this Department.
After survey Of the situation, it
was decided to cancel all appraisals
and approvals on loans in connection
with which papers had not actually
been signed and this has been done.
It was also decided to make an
equitable allotment Of tho available
loanable funds to the several counties
of the State so as to give each coun-
ty a fair shares Of the total loan
business to be placed under the ex-
listing legislation. This allotment has
not yet been definitely determined,
but is receiving careful consideration
and will probably soon be be made
and announced through the public
press.
The existing laws limit the amount
Of Real Estate Series Bonds that may
be sold, to Ten Million Dollars. There
fore, the total amount that may be
loaned pn farm mortgage without
action from the legislature, cannot
exceed Ten Million Dollars. Tho old
administration loaned approximately
Two end Three-Quarter Million Dol.
lars, this leaves approximately Sever
and One quarter Million Dollars that
can b loaned within The present
Legislative restrictions, providing the
bonds can bs sold and tho money Oh
tained thereby for the making ol
such loans.
At the present time sale has ALREADY
been arranged Of 35,5oo,O0o Of thes.
and it is expected that funds will b.
available thereffom Tor new loan
about the first Of February. Their
seems to believe that the remainder
Of the Real Estate Series Bonds vii
be easily sold as soon as the mone1
therefrom is needed. Therefore. thil
department is making plans to LOAF
i Seven and One quarter Million Dol
lars to the farmers Of this Stat
as rapidly as can Be efficiently ant
safely done.
The rate Of interest to be charge.
lis regulated by the rate Of interes
horns by the. last bond Issued. n,
sale Of the bonds BY the old admins
! tration bearing tho high rate Of ei1
i teracsnt ttmpels the idepa1tmslts.t q
! SharRe fho farmers ! higher fatS tHal
would have bsen necessary had q
bdAdss bSeh s9ld aS g. lowsr lats. II
j rxte Of interest on he nsw fi1& 'lodh
i will b dix and ope-han Per cent
Only ons-hal1 per cent admiAista
u ton charge being made. instead .
one Per cent as heretofore charged
Only ono type Of loan mortgage vii
bSmads: A twenty-six year amortisa
ton mo1tsasss fhse trthtiDal ~
ments win b based upoh ! ont IN
!, one-hah per cent annual amortiEa
! ifi6n. ThissWiH maks ths total a1nha
payments paid by2 ths borrower
! equivalent 10 eight per cent on th
II loan. Six and ons-haH per cent !
: this wilIbe interest and ths sfemaind6
i will be principal, and the paymen
, Of this eight per cent for twenty-si
d years will retire tho loans In fql
!. interest and principal EXCEPT ths
5 there will be q small balance s4us
to about four per cent to be pal
in addition to the eight per cent q
the end Of the twenty-sixth yea
: The borrowers will have the right {
! pay the loan off in full on any II
terest day.
? Loans may only be made 20 resident
!. az North Dakota who are actual farm
!. ers, either living on tie land ofere
q for security OF living On land adiacel
81 thereto, and actually farming then
ytselves the land upon which the los
a is placed. No one borrower may bol
/ row to exceed Eight Thousand Dollal
and no loans may be made to exec,