Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-04-15
CHAPTER 1T
An Act Relating to Adjustment of
Rate of Interest on Farm Loans
Granted by the Statn


Granted by the State
Section seven of chapter three hum
dred and three of the public laws of
nineteen hundred and seventeen.
fas amended, is hereby amended
by adding to said section the
following: Provided, that all loans
made at the rate of seven per
cent between July seventh, nine
/ teen hundred and twenty-one in pur-
suance of chapter one hundred and
nineteen hundred and twenty-one.
and July seventh. nineteen hundred
and twenty three may be re-issued
so that the rate of interest thereon
from the date of such Reissue; SO
| that said section. as amended, shall
read as follows
Sec. 7. The commissioners shall
meet twice monthly whenever one or
more applications for loans are
their discretion. to consider applica-
lions and they shall consider and dis
pose of all applications in the order
. in which such applications were re-
ceived The commissioners may
grant applications for loans for which
sufficient security as hereinafter pro-
vided is offered. subject to the APP
prevail of the attorney general of the
title to the land offered as security.
The commissioners may grant appli-
when they consider the security
Offered to be inadequate. they may
reduce the amount of the loan to n
sum for which they deem the security
to he adequate.
First. The commissioners shall re-
quire as security for every farm loan
a first mortgage on farm real estate
, of market value at least double the
, amount of the loan;
Second. No loan shall be granted
fn " hn &c n ntI n
resident of this state and bona tide
! occupant of the land offered as secu
| rity:
Third. No loan shall be granted
| upon any land on which the market
value is less than ten dollars per
I acre;
Fourth No loan of less than
three hundred or more than ten
! thousand dollars shall, be made to
any one person. and no person shall
I ting more than ten thousand dollars;
Fifth. The reserved land fund. not
| invested. shall be set aside for loans
! under this section. or for any of the
purposes set forth in section three.
and the amount of said fund is here
| by appropriated for such uses:
Sixth. Loans shall be granted
only for the purpose of assisting the
| borrower to erect necessary dwelling
| houses and farm buildings. to build
| SilOS, Clear HIS ldHu Ol loIGSI SEON III.
| for the purchase of live stock, and
| farm machinery. and for any other
! legitimate agricultural purpose. and
also to refund an existing mortgage;
| Seventh. The borrower shall pay
a charge OF five per cent per annum.
! payable semi-annually, for the use
| of the loan, from the date
of the loan and thereafter so long
F., as the loan remains unpaid. and shall
assign to the state, so far as it's int
| erests may APPEAR. any policy of in
| surance upon buildings on any prop
| ertf mortgaged lnder this act during
| the lifetime of the mortgage. All
| loans shall be made for a term of not
! less than one, nor more than twenty
years. but the principal of the loan.
| of the borrower may be paid on any
interest date occurring not less than
one nor more than nineteen years
| after the date of the loan. and in any
| event the whole shall be payable in
| twenty years, and when parrish pay
ments are made, the semi-annual
charge of five per cent per annum
shall be made only upon the unpaid
| balance of the principal of the loan.
| Provided. that all loans made at
the rate of seven per cent between
July seventh. nineteen hundred and
tWenty-one. in pursuance OF chapter
one hundred and forty-seven. of the
public laws of nineteen hundred and
| teen hundred and twenty-threc. NAV
be re-issued so that the rate of int
crest theron shall be five per cent
| per annum. from the date of such re-
issue. Approved April 2.