The Bismarck tribune., 1931-10-12
new REGULATIONS
INCREASE AMOUNT
FOR DR0UTH LOANS
Government Aid to Be LiberaIiz.
ed Under Terms Of Agree
ment Reached
At least 100000 of federal loans


VIII be made available to farmers of
the drought area in northwestern
North Dakota as the result Of new
iced loan regulations agreed on hv
secretary OF Agriculture HYDE fol.
loving conferences with governors of
North and South Dakota and Mon
tana, Governor George F. Shafer said
Monday on his return from Washinr-
ton.
I regard the new rules as workable
and believe that at least 1000 600 of
federal loans will be" available to
farmers Of the drought area in North
Dakota in addition to loans ALREADY
maze, Governor Shafer said.
I am hopeful that all mort2age
holders on livestock in the drought
area OF North Dakota will 70 the linn
1t to make it possible for their mort
gagors to comply with these feed loan
regulations"
Changes to be made in the feed
loan regulations will be in accord
ance with the following memorandum
on which the governors and Secretary
Hyde agreed:
May Require Waivers
III the applicant has given prior
chattel mortgage or mortgages, other
than chattel mortgage or mortgages
20 the United States under regulations
OF July 3. 1881. on livestock for which
the applicant is applying for a loan
Tor feed, he shall secure the signature
OF such mortgage holders on the
mortgage form for the purpose.
III 1t shall appear that such prior
mortgage or mortgages exceed the
sum OF $25 per head on work horses;
$50 per head on milk cows and pure
bred cows; $l7.50 per head on stock
COWS and $40 per head on two-year
old milk stock and purebred heifers:
$l5 on two-year old stock heifers; $40
on yearling beef stock; SITS ON sheep
and IS on brood sows the prior mort
gage holder or holders shall waive all
that portion Of such prior mortgage
or mortgages in excess of said
amounts in favor of the United States.
1t Is understood that the government
is to loan no money on ewes over
three years old.
Agree Not To Foreclose
I'm consideration Of the govern
ment extending this feed loan the
prior mortgage holder or holders also
agree not to foreclose their mortgages
prior to September 30, 1882, without
the consent of the secretary of agri-
culture. or his duly authorized repre-
sentative.
THE holder or holders of the prior
mortgage or mortgages, where their
mortgage covers the property that is
not covered in the lien Of the United
States. shall agree to exhaust such
security as they have which is not
pledged to the United States in the
case Of foreclosure or sale.
1T Is further understood that the
mortgage to the United States under
these regulations shall cover all the
property of class owned by the bor-
rover for which the feed loan is be-
ing made. Where the applicant or
borrower is now indebted to the Unit
ed States for feed loan granted un-
der the regulations of July 3, 1881, the
amount of such mortgage with ac-
crusd interest shall be included in and
made a part of any loan made here
under, and shall be figured as a part
OF the $500 limitation hereinbefore
setforth.
Need Consent to Sell
THE senior lien holder or holders
to the government lien shall agree
that he or they will not transfer,
hypothecate, pledge, or assign such
mortgage, mortgages, or notes with
cut the written. consent of the secre-
.ary OF agriculture or his duly au-
Shorized representative. The secre-
aary will give his consent to such sale,
transfer or hypothecat!on upon the
condition of such new holder or hold
ers consenting to the terms Of the
agreement or waiver of the prior lien
holder to the United States, as here
inaboye set forth.
Where the applicant applies for
a loan on the livestock, on the high
er class Of cattle in value, the Secre-
tary shall be satisfied in such ways
as he may direct, that the livestock
upon which the loan is sought comes
properly within this classification.
1.-The secretary may require such
additional security, in addition to the
livestock for which the feed loan Is
being made, as he may determine the
conditions require.
"The time to receive applications is
extended to December !, 1881"