The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-26
each MAY BORROW
UP TO $4,000 FOR
EMERGENCY PLANS
No>Payments on Principle Must
Be Made Until End Of
Three.Year Period
CORPORATIONS INELIGIBLE
North Dakota Farmers Must
Obtain Advances From st.
Paul District Agent

federal loans for refinancing their
farms are explained in detail in the
accompanying article.
All farmers except corporations are
eligible to borrow up to 5000 each for
refinancing mortgages, for working
capital and for redemption or re-
purchase OF property owned by them
before foreclosure, II the foreclosure
occurred after July I, 1881.
No payments on the principal Of
the debt viii be required for the first
three years, but regular payments on
the principal must be made at the end
Of the three-year period.
Congress, in the act approved May
~, has authorized the Reconstruction
corporation to make available to the
federal farm loan commissioner up to
$200, 900 600 for this purpose.
Loans In North Dakota will be made
by the district agent Of the farm loan
commissioner at st. Paul. His district
includes North Dakota, Michigan,
Minnesota and Wisconsin. He will
provide application blanks upon re-
quest.
The steps for obtaining loans, pro-
viding appraisal and security and
paying them Oft are described in the
following
The Farm Loan Commissioner has
appointed twelve agents through
whom he will make loans under the
Act Of Congress approved May IL,
1898. The location Of the the north
loans vii be made through him are:
ST. PAUL, MINN.-Michigan, Min
nesota, North Dakota and Wisconsin,.
Mail to an agent Of the Farm Loan
Agent Of Farm Loan Commission
er. st. Paul. Minnesota"
Loans to Farmers By Commissioner
Farm Mortgage Act Of 1888 approved
May 18th, 1898, the Reconstruction
Finance Corporation is authorised and
: directed to allocate and make avail
the sum of 5000, 1000, 900, or so much
thereof as may be necessary, to be
used for the purpose of making loans
under certain conditions to farmers
gage upon real and personal farm
property. It is expected that gener-
ally these loans will be made on
second mortgages on farm real estate
supplemented by mortgages on farm
livestock and other personal prop
erty.
Agents Of Farm Loan Commissioner
The Farm Loan Commissioner has
appointed an agent In each OF the IL
federal land bank districts. The Farm
Loan Commissioner makes loans
through these agents to farmers di-
rectiy; Loans are made upon, an
secured by first or second mortgages
upon the whole or any part Of the
farm property, real or personal, in
Guiding crops. OF the farmer borrow
pay fees to cover the cost Of appraisal,
determination Of title and recording.
Application for loan should be
made to the agent Of the farm loan
the property offered as security is
located. Application blanks may be
obtained by writing to the agent.
Eligibility Of Borrower
AS used in the act the term farm.
er" means any individual who is en-
gagged in farming operations. either
personally or through an agent or
ncome GE d ss ro part Of whose
atoms, and includes personal repre-
sentative of deceased farmer. Cor
porattons are not eligible for these
loans by the Farm Loan Commits
Purpose Of Loans
A prospective borrower must state
In his application how he intends to
SPECIFICATION is granted, de he 1A must use use
the money for the purposes stated in
his application. The act defines the
purposes for which loan may be
ee to a aass
with proceedings under Chapter 8 of
the Bankruptcy Act Of July !, 1898,
as amended (relating to agricultural
any
or unsecured, of the farmer; (b) to
provide working capital for farm OPP
erations: and (c) to provide funds to
enable any farmer to redeem and Tor
him prior to foreclosure which has
been foreclosed at any time subse.
auent to July !, 1881. In many in
for q loan from the Farm Loan Com
missioner may find that their creditors
settlements.
Security Requirements for Second
MORTGAGE Loans
When loans by the Farm Loan
commissioner are to be secured by
second mortgages upon farm real
the holder Of the first mortgage to
limit his right to proceed against the
farmer and the mortgaged property
depending upon the aggregate amount
Where the aggregate of an existing
first mortgage on the applicants
property and the amount of a second
mortgage requested Of the Farm Loan
Commissioner does not exceed $4,000,
loans will be made by the Commits
sioner only in case the holder of the
1lrst mortgage agrees that during
period Of three years he will not pro-
coed against the mortgagor and Tor
the mortgaged property for a default
in the payment of principal unless in
the meantime the Commissioner con-
sents in writing to such proceeding.
second mortgages exceeds $1,000. loans
will be made by the Commissioner
only in case the first mortgage
asrees that during q period Of five
property on account Of default IN the
payment Of principal or interest or
under any other terms Of the first
cured thereby unless in the meantime
the Commissioner consents in writing
to such proceeding.
;, The act places a limit of $4,000 on
the amount that may be loaned to
any one farmer by the Farm Loan
Commissioner. Under the law, the
Loan Commissioner. together with all
prior mortgages or other prior evil
dences Of Indebtedness secured by
such farm property, may not exceed
p per centum of the appraised value
thereof.
The appraisal Of the property Of
IN the process Of making a loan.
After application is received by the
agent OF the Commissioner in proper
form and from a preliminary CON
sideration of the information con-
tanned therein it appears that the
applicant and the security offered are
eligible, the applica ton will be as
signed TO an appraiser who will ma Ike
An appraisal OF the security. II the
report Of the appraiser is favorable
the agent considers the application
and the report Of the appraiser and