Red Lodge daily news combined with Carbon County news., 1934-03-28
MIDLAND CREDIT
SETUP IS READY
TO ISSUE LOANS
Loan Applications Coming
From Farmers In
5 Counties

Applications for production
loans to farmers in Saltwater,
Yellowstone, Big Horn, Carbon
Sweet Grass and Treasure coun-
ties r now being received by w.
j. Soderlind, secretary-treasurer
of the Midland Production Credit
association. According to Mr..
Soderlind, all loans will be made
on a business basis and according
to the security furnished by the
applicant. Headquarters for the
Midland Production Credit a%ssoci-
alton are located at the First Ma
tional bank building in Columbus.
"The loans that will be made in
this county and the other five
counties served by the Midland
association must be good loans
and loans that are collectible if
the association is to continue as
a permanent service to farmers in
this and other communities, as in
tended" Mr.. Soderlind said.
Fortunately, not all farmers in
this county need credit" he con-
tinued, "but for those who do the
association stands as a business
organization-not as a charity in
stitution. Loans may be obtained
for periods of three to IL months
by any eligible deserving farmer
who needs credit and has security;
but if a farmer is eligible for
credit it must be extended on a
business basis"
Each applicant has to state in
his application what property he
is offering to secure the loan, Mr..
Soderlind said. Security for these
loans win consist. of first liens on
crops, livestock or other personal
property on which a lien or chat
tel mortgage may be taken to Sc
cure the loan adequately. The lien
may be taken on property already
IN the possession of the borrower,
or to be purchased with the mon
ey borrowed. 1t is not intended
that production loans shall be Sc
cured principally by mortgages on
real estate. Where this type of
security is taken it will be regard
ed only as additional collateral.
Mr.. Soderlind said that the
charges on production loans would
be as low as possible in keeping
with business credit. A small fee
is charged to inspect the property
offered as security by the appli-
cant, but usually no charge will
be made for inspection if the loan
is not granted.
The minimum amount Of a pro-
duction loan is $50. The interest
rate at present is 81 per cent,
charged only for the actual num-
her of months the loan is out
standing. The interest is not col
lected until the loan is due.
Loans may be obtained to pur-
chase such items as seed, equip
ment, and fertilizers, or to cover
the cash costs of growing, cult
waiting, or marketing crops; and
for the production of livestock,
and dairy and poultry products.
Most of the loans will run from
three to IL months, and are to be
due and payable at the time when
the crops and livestock financed
are sold. Loans such as those on
dairy cattle may extend longer
up to 10 months-and ordinarily
will be repaid from the sale of
products of the dairy financed.
Each farmer borrowing for the
first time automatically becomes
a member of the association, since
each is required to own voting
stock in the association equal to
five per cent of the amount he
borrows. The stock may be pur-
chased with a part of the loan
proceeds. 1t is the only voting
lstock of the association and may
be purchased only by borrowers,
each having only one vote regard
less of the amount borrowed.
A farmer who becomes a men,
Der of an association does not
have to "stand for" the loans of
the association or the debts of
other borrowers. The stock car
ries no double liability. ANY pos
sible impairment in the value of
the stock of the association will
affect the individual borrower
only insofar as his own stock hold
ing is concerned.
The Midland Production Credit
association, which is authorized to
make loans in this county, is one
Of IL which have been established
in this state. Most Of the capita.
of the association is provided by
the Production Credit corporation
of Cnokane which is aunarxiaine