The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-26
low Farmer May Obtain Federal Loans for Renancng His Farm

ance Of the loan. delinquent in
stallments, insurance or any
other delinquencies verified by
the owner Of the mortgaged
premises.
(e) A statement Of the holder Of
the mortgage showing the date
loan, the dates and amounts of
the payments received on ac-
count thereof; and whether the
holder IS the sole owner, or II
d aes sye o any etSer ape sa
firm or corporation holding an
interest therein with a descrip-
ton OF the exact nature Of such
interest.
which he is willing to- sell the
loan and whether he will accept
consolidated federal land bank
bonds therefor.
the federal land bank will consider
the application and unless the cir
cumstances are such that 1t appears
inadvisable to do so, will refer the
application to land bank appraiser
In the usual manner.
I. Upon receipt Of the appraisers
report, the federal land bank will
consider the same and determine the
maximum amount it is willing to
pa, tor the mortgage covering the
no case to exceed the amount of the
unpaid principal Of the mortgage pur-
chased, on the date Of purchase, or
so per centum Of the normal value of
Of the value Of the permanent. insur-
able improvements thereon, as deter
mined by appraisal. whichever Is the
S: II the application Of the borrow
then notify the holder Of the mort.
gage In writing whether it will offer
to purchase such mortgage, and IL so,
the amount at which 1t offers to pur-
chase: The offer should be subject
ital stock in the federal land bank
IN accordance with the provisions OF
the Federal Farm Loan Act, as amend
ed; subject to the opinion of counsel
tor the federal land bank as to
qualified as collateral security for
farm loan bonds; and subject to pay
ment to the Federal land bank of the
fees and charges required under the
regulations with reference to direct
6. II the application Is for a loan
through a national farm loan associa-
ton, the bank will send the applica-
ton to the interested association with
d 1etseI 10 the erect tnaC the Dank
would be willing to consider making
loan not In excess Of a certain max
imum amount determined by the bank.
Z. The association may then either
approve the loan for the maximum
AMOUNT as determined by the bank,
application, indicating it's action upon
the application as in the case Of any
other loan made through such asso-
citation, and return the application to
the bank.
s. The bank will then notify the
holder in writing of the action Of the
association and II favorable the
amount at which the bank offers to
purchase in the manner outlined
made in bonds or cash. The offer
should be subject to the opinion Of
counsel for the Federal land bank as
to whether the loan applied for will
be qualified as collateral security for
Of the Federal Farm Loan Act and
subject to- payment OF any further
fees and charges. Unless any unpaid
items Of cost and the stock required
to be subscribed by the owner Of the
with the loan are to be paid in cash,
1t Will be necessary to take these
into consideration in fixing the pur-
chase price. of which the holder will
be notified, so that the purchase
and the amount Of the stock will in
the aggregate not exceed 500 of the
appraised value OF the land plus 209o
OF the appraised value Of the per-
manent, insured improvements.
cepted. the federal land bank will
then call upon the holder to furnish
such abstracts, title reports, appraisal
reports, original notes and mortgages
or other paper or documents which
AHC = AetS ~
nection with the closing Of the loan
In the usual manner employed by the
federal land bank.
10: Upon the acceptance Of the Of
to the holder upon delivery Of proper
assignment Of the mortgages and the
credlt instruments secured thereby,
unless Tor any reason counsel for the
federal land bank is not satisfied
bank good title to the mortgages or
credit instruments in question. In
such cases it may be necessary to re-
tain the proceeds until such time as
they may be used to discharge the
other steps may be taken as may be
necessary to perfect the banks title.
IL. All assignments Of the mort
cages and credit instruments secured
thereby acquired by a federal land
pNANA0SC ~ ACAdH6c SuOuIO
be without recourse to the holder, and
should be in accordance with the
law Of the state in which the prop
erty is situated.
~. Any purchase Of a first mort
gage by federal land bank from a.
Joint stock land bank should be duly
approved by the boards Of directors
OF the selling and purchasing banks,
either before or after the purchase is
consummated. In the event bor-
rover from joint stock land bank
refuses to make such an application
for loan through a national farm
loan association or for a direct loan
in the event the mortgaged premises
are situated in a locality in which the
FEDERAL land bank is authorized to
make direct loans, a qualified first
mortgage may nevertheless, be pur-
chased by the federal land bank under
the provisions OF the first sentence
OF section 10 (2), at an amount not
exceeding the amount Of the unpaid
principal on the date of purchase or
SO per centum Of the value Of the land
mortgaged and 20 per centum Of the
value OF the permanent, insurable
improvements thereon, as determined
by appraisal, whichever Is the small
er. In such case, however. the bor-
rover. having refused to comply with
the provisions Of sections Z and 8 Of
the Farm Loan Act. will not be en-
titled to any deduction of the amounts
payable by the terms Of his mortgage.