Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-07-19

farmers Indebtedness is a scale-down
to the appraised value of the prop
erty, leaving no equity in the prop
erty over and above his Indebtedness.
1t would follow, therefore, that if the
appralsals are on basis comparable
to the appraisals of the Farm Credit
Administration, a further scale-down
would be necessary before the max
imum aggregate of the loans which
may be made by a Federal land bank
and the Land Bank Commissioner on
any particular piece of property would
be sufficient to refinance a farmer
seeking the benefits of the Amend
ment and furnish him the funds to
reacquire title free from the claims
of his creditors. 1t is to be hoped
that the appraisals under the Bank
ruptcy Act will be on a basis which
will permit the Farm Credit Admin
istration to be of the greatest possible
service to those deserving farmers
who may find it necessary to effect
scale-dOwns of their Indebtedness. In
that connection, it is to be noted that
at the present time there are approx
mately 100000 outstanding commit
ments which farmers have been I'M
able to accept, chiefly because they
have been unable to procure the nee
essary scale-downs from their cred
itors.
| IL. The appraisal having been
made, the exempt property of the
| n nil =,
required to be set aside to the debtor
subject only to any existing mort
cages or liens upon such exempt
property, not exceeding its appraised
value. 1t is to be noted that title to the
exempt property remains in the debtor
and that, as to such property, any
existing mortgages or liens against
it are thus scaled down to the fair
appraised value of such property.
II. The debtor is Invested of title
to all the remaining property. How
ever. upon order of the referee ICON
Citation commissioner, the debtor
may remain in possession of any part
or all of the remainder of the prop
erty presumably as the farmer may
elect), such possession to be under
the control of the court. 1t would
seem that, the debtors possession
being under the control of the Court,
proper steps may be taken to prevent
waste and deterioration of the prop
erty while in his possession.
ID. The property of which the
debtor retains possession is impressed
with a general lien for the payment
of the appraised value thereof to the
trustee of the creditors if one has
been appOinted). Such general lien
is subject and inferior to all prior
liens, pledges and encumbrances. The
latter remain in full effect for the
benefit of their respective holders, up
to the appraised value of the prop
erty. 1t would seem to follow that
where debt secured by a first mort
gage on certain piece of property
was greater than or equal to the APP
praised value of the property, the
holder of the first mortgage would
have the prior claim to all the pay
ments purchase or rentaD made by
the debtor on account of such prop
erty.
IA. Paragraph of subsection IS
as added by the Amendment provides
for a sale of the property back to
the debtor with the consent of the
persons holding liens against such
property. The terms for the payment
Of the appraised price under the re-
purchase agreement, made with the
farmer by the trustee" presumably
the trustee in bankruptcy, are as
follows:
(a) Payment of 20 interest
upon the appraised price within
one year from the date of the
agreement, and payment of 20
interest annually thereafter on
any then unpaid balances of the
appraised price.
(b) Payment of 21296 of the ap-
praised price within years from
the date of the agreement.
(c) Payment of an additional
2123o of the appraised price with
| in years from the date of the
| agreement.
| w VI oil dOOItlOudl
SO of the appraised price within
years from the date of the
agreement.
(e) Payment of an additional
$50 of the appraised price within
years from the date of the
agreement.
(f) Payment of the remaining
unpaid balance $50, where the
farmer has Heretofore made only
the minimum required payments)
of the appraised price within
years from the date of the agree
ment.
60 Payment, by the debtor, of
all taxes on the property.
Is. The proceeds of such payments
on the appraised price and interest
are distributable to the lienholders as
their interests appear, and any bal
ance over is distributable to unse-
cured creditors.
16. The agreement for the resale
of the property to the debtor may
also contain such other conditions as
the trustee considers fair and equit-
able; and it is provided that all liens