The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-08-28
! armer Elevator to
Finance Own Relief
BANKRUPTCY LAWS
OUTLINED TO CLUB
n. z. O'Hare Tells kiWanis Far.
mer Has Two Avenues For
Fivs-year Immunity

Recent amendments to the federal
bankruptcy act are designed to give
farmers immunity from the odium Of
being termed "bankrupts" or losing
possession Of their property. the per-
iod Of grace being five years under
the terms Of the Frazier-lemke farm
mortgage moratorium act, H. +. o.
Hare. local attorney. told members Of
the Bismarck Kiwanis club at the or
ganization's luncheon meeting Tues
day noon.
O'FIare gave q brief review Of all
amendments to the federal bankrupt
cy act. once called the Nelson cure"
since the Hoover administration.
The act Of March 3, 1883, under the
Hoover administration, the speaker
said. which covered many types Of
businesses, later was found to be mot
strong enough" This amendment gave
farmer opportunity to obtain q
reasonable time to arrange for pay
ment of his indebtedness on petition
of Is neighbor farmers.
An amendment passed May "a, 1894,
provided for readjustment Of debts
Of municipal corporations.
Another amendment Of June Z, 1884,
provided for the reorganization Of
corporations and was very broad" in
its scope, giving rise to many equity
actions before U. s. courts.
Two Avenues Provided
The Frazier Lemke moratorium
measure gives the farmer two avenues
for obtaining the five-year immunity,
O'Hare said.
In both procedures he applies to
court for appointment Of appraisers
for his property. When the appraisal
is made and the farmers proper ex-
emptions arranged for, the farmer
seeks the consent Of the lien-holders
to proceed under the first method.
This provides that the farmer will
retain possession Of the property for
five years, providing he pays the fol-
lowing interest on the appraised value
over exemptions: one per cent In the
first year, two and one-half per cent
In the second year: two and one-half
per cent in the third year; five per
cent in the fourth year and five per
cent in the fifth year. At the end Of
this time he has the option Of buy
ing back his property at the apprais-
ed value. Meantime the farmer has
been obligated to pay taxes on the
property involved.
The second procedure Is provided
for should the lien-holder or one OF
the uen-holders refuse to agree to the
first procedure and file written OBJ
iections with the court.
Stay For Five Years
In such case the court viii set
aside all exemptions and grant . stay
Of any PROCEEDINGS for period OF
five years. The debtor retains pos
session Of the property in lieu OF
reasonable" annual rental payments.
As in the case Of the first procedure,
the farmer at the end OF the five-year
period then has q right to buy back
the property at the appraised value.
The lien.holders or debtor may apply
for new appraisals II they desire 1T the
end Of five years or abide by the
original appraisal.
O,aare prophesied that the U. 8.
supreme court will be asked to de-
eide upon the constitutionality Of the
Frazier-L emke act, but pointed out
that some Of its provisions are similar
to the moratorium act Of Minnesota,
which already has been upheld as
constitutional.
As well as being chief speaker.
O'Hare also was program chairman.
President Walter q. Renden presided
over the luncheon and J. p. Wagner
led the group In singing.
Guests were Robert i. Kennedy,
state engineer. and Alfred Zuger, also
Of Bismarck.