keep the paper, which is likely to have indorsements that add to its strength. Unless the paper is paid it will probably be protested, hurting one's credit and adding to be paid the notary's fee and cost of sending notices of dishonor to the indorsers, and to the drawer, in the case of a draft. Notes which run to one's own bank, that is, which are for loans made direct to the borrower, are often renewed. Arrangements for this should always be made prior to the due date. Some banks rather than make loans on paper maturing in three, six, and nine months, prefer a note for the whole amount for three months, for which at maturity they agree to accept part payment and a new note for three months, and so on until final settlement is made. A frank disclosure of one's needs and abilities is what a bank wants. If the bank can help with profit and safety, it will surely do so. Call loans are due on demand, but it is usually understood that some notice will be given. How much, varies. Stock exchange call loans are subject to call by one o'clock and it is customary for the brokers to pay them by two o'clock, though the law allows settlement by the close of banking hours. Renewals of stock exchange call loans are usually made before one o'clock. Rush hours at a bank cannot always be avoided, but if possible, it is more satisfactory to everyone. 130. Borrowing from land banks. The Federal farm loan act, passed in 1916, and afterward amended, permits any person farming, or about to farm, an agricultural tract to borrow not less than $100 and not more than $25,000 ($10,000 in Alaska and Porto Rico) upon that particular tract as security; provided that (1) the loan does not exceed 50% of the appraised value for agricultural purposes of the land mortgaged and 20% of the value of BORROWING FROM LAND BANKS 179 permanent insured improvements thereon; and (2) is made for the following and no other purposes: (a) To provide for the purchase of land for agricultural uses. (b) To provide for the purchase of equipment, fertilizers, and live stock, necessary for the proper and reasonable operation of the mortgaged farm. (c) To provide buildings and for the improvement of farm lands. (d) To liquidate indebtedness of the owner of the land mortgaged, incurred for agricultural purposes, or incurred prior to January 1, 1922. Preference is given those who apply for loans of $10,000 or less. A borrower may borrow from a Federal land bank through a national farm loan association, or through an approved bank acting as the agent of the Federal land bank, where the Federal Farm Loan Board thinks no association is likely to be formed. The borrower applies for a loan on a form prescribed by the Federal Farm Loan Board (see the form shown in this chapter), but he cannot borrow unless at the same time he buys stock at five dollars a share for every $100 of his loan in the national farm loan association, or, if there is no association in his locality, in the Federal land bank of his district. Any natural person who desires to borrow on a mortgage of the land which he is farming "may become a member of the association by a two-thirds vote of the directors upon his subscribing for one share of the capital stock of such association for each $100 of the face of his proposed loan, or any major fractional part thereof. He shall at the same time file with the secretary-treasurer his application for a mortgage loan, giving the particulars required." Every member of a farm loan association must be a borrower and his stock is held as additional security for his DON'T WRITE ABOVE THIS LINE. SPACES ABOVE THIS LINE FOR FEDERAL LAND BANK ONLY (Applicant's full name) (Husband's or wife's full name) APPLICATION OF To The Federal Land Bank of Louisville, Louisville, Kentucky (hereinafter termed bank) for a term of years, with interest at the rate of.. per cent. per annum, payable semi-annually, er sach other rate as may have been established by the Federal Farm Loan Board at the time this loan is closed, said interest rate not to exceed 6 per cent, per annum in any event; the principal and interest to be paid on the amortization plan prescribed by the Federal Farm Loan Board. I also hereby subscribe for the amount of eapital stock in said association that this loan will involve under the terms of the Federal Farm Loan Act. For said loan I offer as security a first mortgage on the following described real estate (Fill in plat of land on back hereof.) TOWNSHIP. RANGE A. DESCRIPTION AND LOCATION OF PROPERTY. GIVE ACCURATE DESCRIPTION-COPY FROM DEED. SECTION. 3. Do you farm this land either personally or by means of hired labor to whom you pay a fixed wage?. 4. If land is farmed wholly or partially by tenants on either cash, crop, or share reat pian, give names of tenants and gen.. eral terms of agreement under which they are farming... 5. State, when you intend to move on this land and farm same, either personally or by means of hired labor, to whom you will pay a fixed wage (give date).. C. PURPOSE OF LOAN. To which of the following four purposes, to wit (A, B, C, D), do you intend and hereby state you will apply the proceeds of this loan? Describe fully and definitely, under the proper heading, the purposes for which proceeds of loan will be used. Existing debts to be paid must include only those debts described in paragraph E of this application. INDIANA AND OHIO State if land proposed to be purchased is to be included in mortgage given to this bank. VALUATION OF LAND. (The acreage classifed must actre with total acreage off:red asurity for this loan.)) Number of Classification. Orchard. Cultivated....... Pasture.. Logged off. Timber. TOTAL $ EACH AND EVERY QUESTION MUST BE ANSWERED PLAINLY AND DEFINITELY. BORROWING FROM LAND BANKS 181 E ENCUMBRANCE AND DEBTS OF APPLICANT. Include under this heading all encumbrances, mortgages and liens, etc., against the property offered for security-also all amounts due on account of purchase money, notes, or contracts covering purchase of land. If past due interest, why?..... TOTAL.. You are authorized to pay all existing liens out of proceeds of the loan herein applied for. My other debts and obligations are as follows (State whether debt is secured by mortgage, etc., and property given as security). F. A summary of my live stock and a financial statement of all my resources and liabilities are as follows: FINANCIAL STATEMENT. Total Value of Live Stock. MY TOTAL NET WORTH (resources minus liabilities).... $.. Are there any outstanding judgments against you? If so, how many and to what amount?.. I own farming implements valued at $, sufficient to farm... protected against inclement weather conditions?. acres. Are implements housed and If the above live stock and implements are not kept on the Jand to be mortgaged, state where they are kept............................. G. PRODUCTS OF THE FARM. During the last crop season the cultivated portion of land herein described was divided and crops grown thereon as follows: 6. Acres fenced? .......... Kind of fence? 7. How many acres need ditching or draining?.. 8. How many rods of open ditch on land?. 9. How many acres subject to overflow?.. 10. Is land located within bonded or other drainage district?.... 11. If so, what is the total drainage assessment against this 12. Has the drainage project been a success?. 13. Do you own both surface and mineral underlying this farm? 14. If there is coal under your land, what is the approximate 15. Is there an existing lease affecting coal or other minerals I acquired and came (or expect to acquire and come) into possession of this property in the following manner: H GENERAL (Continued) Each and Every Question Must Be Answered Plainly and Definitely I own....... (County) (State) I am a native of. and and....................girls aged. I carry life insurance. located in Give name and address of any person to whom you have paid or agreed to pay a fee or commission for obtaining this loan (Address) (Name) (Amount) Have you ever applied to a Federal Land Bank or a Joint Stock Land Bank for a loan on this property?......... If so, give name of bank, date, amount, and reason why loan not completed..... Have you ever been or are you now indebted to any Federal Land Bank for a farm loan?. - Did you assume the indebtedness because of purchase of land already mortgaged to a Federal Land Bank, or did you obtain the loan by applying through a National Farm Loan Association?. (By purchase) (Town and State) Has application for a Federal loan by you on any of this or on any other land been withdrawn?. Was your application for loan ever rejected by any National Farm Loan Association or Federal Land Bank? State name and reasons for rejection... For the purpose of procuring said loan, I have submitted this application to the bank and hereby represent and guarantee that the statements con tained herein are true and correct and that I have suppressed no information about the property described which would adversely affect its valus. I unsatisfied against me in any court of record of this State or the United States and that there are no encumbrances or liens against the property insurance on permanent insurable improvements to the amount required by the bank. I further represent that I am in open and peaceful possession of the premises described and that my uitle thereto is not questioned nor do I know of any claims that might give rise to adverse claim of my possession. If this application is accepted and a loan granted hereon by the bank, I agree to furnish at my expense, within fifteen (15) days from the date of receipt of notice of approval of this loan, abstract or certificate of title, acceptable in form to the bank, that will show the title perfect is me and the mortgage given the bank a first lien on the property described. I agree to pay all fees for recording and releasing instruments necessary to complete the loss. through any action on or of my part, further represent and guarantee that no suits are pending or jouw bed except as are herein dengribed. I agree to maintain and assign to the bank If this loan be completed by the bank, or if this application is withdrawn or canceled, or the loan noted by the Federal Farm Loan Board for I agree to pay the bank reasonable fee assessed in accordance with rules and terma promulgated by it and expenses (appraisal, determination of title, ete.) incurred in connection with this application. 1 further agree to pay to the argociation through which this application has been filed reasonable charges in order to meet the necessary expenses of the association, provided that such charges shall not exceed amounts to be fixed by the Federal Farm Loan Board, and shall in no case exceed 1 per centum of the amount of the loan. It is understood and agreed that the association Charges do not include fees for recording, etc. If the title to this land is held jointly, authority is hereby given.................... to become a member of this association, and to act for and on behalf of the other joint owner or joint owners. REPORT OF THE LOAN COMMITTEE TO THE FEDERAL LAND BANK OF LOUISVILLE. NOTE: Section 10 of the Farm Loan Act. as amended, provides that the loan committee may designate someone to make an investigation of the soeurity and the applicant in its behalf, or the committee itself may make the investigation. The result of the investigation must be approved and the report signed by every member of the loan committee. 1st. The land on which this report is based is the identical property described in this application and signed by the applicant. 2d. The farm offered as security is in a location. |