The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-26
advises the applicant Of the approval
or rejection of the application.
Agricultural Value AID Earnine

advises the applicant Of the approval
or rejection Of the application.
Agricultural Value and Earning
The basis Of appraisal Of security in
all cases Is the normal value OF the
security for agricultural purposes and
It's earning power for such purposes
Is principal factor. In order to
the security many things must be
kept in mind by the appraiser. It
must be ascertained what crops q par
ticular farm offe red as security is
capable Of producing. as we'll as the
Of years. Consideration must be given
Of acres Of good crop land, the mum
Der In pasture, and the number in
orchard. timber or waste; the char
a ss,; and condition Of the soil: rain
susceptibility to erosion; the carrying
capacity Of the pasture land and prev.
alence Of insect pests and plant
disease. Operating costs must be as.
certained as closely as possible as
against the security. The amount and
kind Of livestock that can be carried
BY the farm and the probable sales
from that source must be determined,
IN addition to the value Of other chat
KlVe0
portation facilities and the available
ity and cost Of hired help.
Interest Rate ON Loans
Under the law the Farm Loan Com
missioner may charge borrowers an
interest rate not to exceed per
centum per annum.
Repayment Of the Loan
Payments on the loans may be made
annually or semi-annually. The law
provides that during. the first three
years the loans are in effect a Dor
rover will not be required to make
payments on the principal IL he Is not
otherwise in default with respect to
any other condition or covenant of
his mortgage. At the expiration of
THIS TINS thu. tthrse.ysar period. payments on
made with each annual or semi-an
nual interest payment which will ex-
tinguish the debt within an agreed
period. In the case of first or second
mortgage loans secured wholly by
pose Of reducing and refinancing an
existing mortgage, the agreed period
within which the loan must be wholly
repaid may. be no greater than that
for which loans may be made under
ed or Lon of Ac Years. as e !,
anticipated that tables will be used
which will spread the term Of pay
ments over a period Of 8, l3, % or 33
years: The amortization tables proper
would begin with the fourth year
whereby the principal portion Of each
installment is constant. The amount
OF each installment will be this fixed
sum to be applied on the principal,
plus interest on the unpaid principal.
No part Of the principal would mature
the first three years.
PfeDayment PPivileRA
A borrower may at any time make
payments on the principal
or pay off the loan in full. The I'M
paid principal Of the loan may also be
closed by payment to the agent Of
the proceeds Of sales Of land, rights
OF way, timber or other property
covered by the mortgage (s). The
agents consent to the release from
cury must Be- % obsaned gam in ns
Quotations From Law
Re: Purchase. reduction and refi-
Of farm mortgages.
Section Is (Second) Of the Federal
Farm Loan Act, as amended, by the
Emergency Farm Mortgage Act Of
1888, reads as follows:
ITO invest such funds as may
be in its possession in the pur-
chase Of qualified first mortgages
on farm lands situated within the
federal land bank district within
it is acting. In order to reduce
and /or refinance farm mortgages,
to invest such funds as may be in
Its possession in the purchase Of
first mortgages on farm lands
bank district within which It 10
organised or for which 1t is act
ing, or to exchange farm-loan
bonds for any duly recorded first
mortgages on farm lands executed
prior to the date this paragraph.
as amended, takes effect, at a
price which shall not exceed in
each individual case the amount
of the unpaid principal Of the
mortgage on the date Of such
purchase or exchange. or so per
land mortgage and 20 per centum
OF the value of the permanent in
sured improvements thereon as
determined upon an appraisal
made pursuant to this Act, which.
eyer Is the smaller: Provided,
gage Is acquired by a Federal
land bank under this paragraph
shall be entitled to have his farm
mortgage Indebtedness refinanced
IN accordance with the provisions
the basis Of the amount paid BY
the bank for his mortgage"
The provisions Of the first sentence
OF section IS (Second), as amended,
FUNDS in the purchase OF qualified
first mortgages on farm lands within
the federal land bank district are in
terpreted to relate to mortgages made
pursuant to the provisions of the
Federal Farm Loan Act which would
= ID hS, tat 80 4. To-
banks. The. provisions Of the second
sentence Of paragraph Second" Of
section 10, as amended, authorize
FEDERAL land banks to purchase or to
exchange farm loan bonds for duly
lands, situated within their respective
districts. executed prior to May IL,
1888. Although a strict construction
Of the provisions Of the sentence just
referred to would not prohibit the
banks from purchasing duly recorded
" to- May -, 1898, nevertheless. 1t il
clearly the intention Of the sentence
that the powers therein granted
should be exercised for the purpose
Of reducing and Ior refinancing farm
to the passage of the Act.
The following procedure should be
observed In the purchase or the ex-
change OF farm loan bonds for first
l. When a holder desires to sell
first mortgages on farm lands stu
ated within a federal land bank dis
trict. he should notify the federal land
bank in writing and furnish it with
the name and address Of the mort
gagor named in each mortgage or Of
the owner Of the mortgaged property
In the event it has been transferred,
the unpaid balance Of each mortgage
and brief description Of the land
sufficient to fix its location including
the state, county, and township.
2. The Federal land bank will then
furnish such holder with respect to
each such mortgage, form Of APP
plication with the name of the Dor
rover and the name Of the interested
farm loan association type
written thereon, together with advice
as to the initial charges, including
the initial charges, il any, to be made
by the interested national farm loan
II there is more than
one association qualified to accept
applications in the territory in which
the property is located, a list of the
qualified associations should be fur
nished in order that the applicant may
select the association through which
his loan may be made. An application
Tor direct loan with the borrowers
name typowritten thereon and with