Lapas attēli
PDF
ePub
[blocks in formation]

10.364 Interest.

10.365 Subscription to stock.

10.366 Stock held as collateral security.

Sec.

Lost, stolen, destroyed, mutilated, or defaced bonds and coupons

10.671 Bonds issued by individual Federal land banks.

10.672 Bonds issued by individual banks; indemnity by applicants for relief.

10.673 Consolidated Federal farm loan
bonds.

10.674 Proof required from applicants.
10.675 Affidavits of persons having
knowledge of facts.
10.676 Submission of application to

Land Bank Commissioner. 10.677 Recovery of original bond. 10.678 Immaterial defacements and mu tilations.

10.679 Affidavits.

10.680 Bonds of indemnity.

Acknowledgment of transfer of

bonds

eral land banks.

10.367 Cancelation of direct loan stock. 10.681 Bonds issued by individual Fed10.368 Receipt evidencing stock subscription.

Refinancing of acquired mort-
gages

10.382 Refinancing mortgages acquired
by Federal land banks.
Prepayment of loans

10.386 Payments in advance after five years.

10.387 Payment in full before five years.

10.682

Consolidated Federal farm loan bonds.

[blocks in formation]
[blocks in formation]

Exempted securities under Securities Exchange Act of 1934 Exempted securities under Securities Exchange Act of 1934. Conditional payments by borrowers for subsequent credit Conditional payments by borrowers for subsequent credit upon indebtedness to land bank.

SPECIAL CLASSES OF APPLICANTS

Section 10.7 Executors and administrators. Loans may be made to executors and administrators (including temporary administrators) when (a) either some individual beneficiary of the decedent's estate, or the executor, administrator, or any coexecutor or coadministrator of the estate, independently of his representative capacity, is (1) eligible as a borrower, and (2) owns, or is about to become the owner of, an interest in the property on which the loan is sought, and (3) can and will incur personal liability for the loan and assume the obligations of national farm loan association membership; and (b) a valid lien can and will be given on the property on which the loan is sought. As used in this section, the term "eligible as a borrower" means a person who is engaged in farming operations, or

Page 23

who is shortly to become engaged in farming operations, or who derives the principal part of his income from farming operations.t (Sec. 6, 47 Stat. 14, secs. 7, 9, 12 "Sixth", 39 Stat. 365, 368, 371, as amended; 12 U.S.C. 665, 716, 745, 771 "Sixth", and Sup.)

†In §§ 10.7 to 10.769, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in the Manual for Federal land banks, issued as of April 1, 1938, by the Land Bank Commissioner and approved by the Executive Committee of the Federal Farm Mortgage Corporation insofar as the Manual sections deal with matters relating to the Federal Farm Mortgage Corporation.

10.8 Heirs, devisees and grantees of a deceased owner of farm land. Loans may be made to heirs (including a sole heir taking without administration), devisees and grantees of a deceased owner of farm land under the same conditions as will permit a loan being made to any other owner of farm land.† (Sec. 6, 47 Stat. 14, sec. 12 "Sixth", 39 Stat. 371, as amended; 12 U.S.C., 665, 771 "Sixth", and Sup.)

10.9 Trustees. Loans may be made to trustees (whether appointed by will or deed inter vivos) when (a) the trustee in his fiduciary capacity is engaged, or shortly to become engaged, in farming operations, or the beneficiaries of the trust are engaged in farming operations or derive the principal part of their income from farming operations; and (b) a valid lien can and will be given on the property on which the loan is sought; and (c) the trustee, or any cotrustee, or some individual beneficiary of the trust can and will incur personal liability for the loan, and assume the obligations of national farm loan association membership.t (Sec. 6, 47 Stat. 14, secs. 7, 9, 12 "Sixth", 39 Stat. 365, 368, 371, as amended; 12 U.S.C. 665, 716, 745, 771 "Sixth", and Sup.)

10.12 Guardians. Loans may be made to guardians when (a) the guardian in his fiduciary capacity is engaged, or shortly to become engaged, in farming operations, or the wards are engaged in farming operations or derive the principal part of their income from farming operations; and (b) a valid lien can and will be given on the property on which the loan is sought; and (c) the guardian, or any coguardian, independently of his fiduciary capacity owns an interest in the property, and can and will incur personal liability for the loan and assume the obligations of national farm loan association membership.† (Sec. 6, 47 Stat. 14, secs. 7, 9, 12 "Sixth", 39 Stat. 365, 368, 371, as amended; 12 U.S.C. 665, 716, 745, 771 "Sixth", and Sup.)

10.13 Persons not sui juris (including infants, insane persons, and incompetents) when not represented by a guardian. Loans may not be made to persons not sui juris (including infants, insane persons, and incompetents) when not represented by a guardian; and property in which such a person, not represented by a guardian, owns an interest is ineligible as security for a loan.t (Sec. 6, 47 Stat. 14, secs. 7, 9, 12 "Sixth", 39 Stat. 365, 368, 371, as amended; 12 U.S.C. 665, 716, 745, 771 "Sixth", and Sup.)

Page 24

For source citation, see note to § 10.7.

10.14 Landlords. Loans may be made to landlords when (a) the landlord has the right to and does exercise substantial control over the management of the farm on which the loan is sought; or (b) he is engaged, or shortly to become engaged, in farming operations, independently of his capacity as landlord of the farm on which the loan is sought; or (c) the principal part of his income is derived from farming operations. (Sec. 6, 47 Stat. 14, sec. 12 "Sixth", 39 Stat. 371, as amended; 12 U.S.C. 665, 771 "Sixth", and Sup.)

10.15 Owners of future interests. Loans may be made to owners of future interests when (a) all interests necessary to the creation of a fee simple estate in the land on which the loan is sought are included in the mortgage; and (b) the owner of the future interest is engaged, or shortly to become engaged, in farming operations independently of his capacity as owner of a future interest in the farm on which the loan is sought, or derives the principal part of his income from farming operations. (Sec. 6, 47 Stat. 14, secs. 2, 12 "First", "Sixth", 39 Stat. 360, 371, as amended; 12 U.S.C. 665, 642, 771 "First", "Sixth", and Sup.)

10.16 Tenants for years. Loans may not be made to tenants for years.t (Sec. 6, 47 Stat. 14, secs. 2, 12 "First", "Sixth", 39 Stat. 360, 371, as amended; 12 U.S.C. 665, 642, 771 "First", "Sixth", and Sup.)

10.17 Life tenants. Loans may be made to life tenants when (a) all interests necessary to the creation of a fee simple estate in the land on which the loan is sought are included in the mortgage; and (b) the life tenant, by reason of farming operations conducted by him on the land covered by his life interest, or otherwise, is eligible as a borrower. As used in this section, the term "eligible as a borrower" means a person who is engaged in farming operations, or who is shortly to become engaged in farming operations, or who derives the principal part of his income from farming operations.t (Sec. 6, 47 Stat. 14; secs. 2, 12 "First", "Sixth", 39 Stat. 360, 371, as amended; 12 U.S.C. 665, 642, 771 "First", "Sixth", and Sup.)

10.18 Owners of undivided interests (including partners). Loans may be made to owners of undivided interests (including partners) when (a) all interests are included in the mortgage; and (b) the owner who desires the loan is, by reason of farming operations conducted by him on land covered by his undivided interest, or otherwise, eligible as a borrower. As used in this section, the term "eligible as a borrower" means a person who is engaged in farming operations, or who is shortly to become engaged in farming operations, or who derives the principal part of his income from farming operations. (Sec. 6, 47 Stat. 14, secs. 2, 12 "First", "Sixth", 39 Stat. 360, 371, as amended; 12 U.S.C. 665, 642, 771 “First”, “Sixth", and Sup.)

10.19 Husband and wife. Husband and wife owning lands in severalty may borrow on their respective lands.t (Sec. 6, 47 Stat. 14, sec. 12 "Sixth", 39 Stat. 371, as amended; 12 U.S.C. 665, 771 "Sixth", and Sup.)

For source citation, see note to § 10.7.

Page 25

10.20 Aliens. To the extent that State laws do not restrict the right of aliens to hold and convey real estate, loans may be made to aliens upon the same basis as to citizens.† (Sec. 6, 47 Stat. 14, secs. 2, 12 "First", "Sixth", 39 Stat. 360, 371, as amended; 12 U.S.C. and Sup. 642, 665, 771 "First", "Sixth")

10.21 Individuals taking title from a corporation (bona fide ownership required). Loans which are otherwise qualified may be made to individuals who have taken title from a corporation in which they were interested as stockholders, provided the transfer is in good faith and not a mere temporary expedient for the purpose of evading the provisions of the Federal Farm Loan Act which preclude loans to corporations other than corporations engaged in the raising of livestock. (Sec. 6, 47 Stat. 14, sec. 12 "Sixth", 39 Stat. 371, as amended; 12 U.S.C. 665, 771 "Sixth”, and Sup.)

10.22 Corporations. Loans may be made to corporations (in addition to those engaged in raising livestock, as to which see section 12 "Sixth" of the Federal Farm Loan Act, as amended (39 Stat. 371, as amended; 12 U.S.C. 771 "Sixth"), when acting solely in a representative or fiduciary capacity for individual beneficiaries, provided the conditions of §§ 10.7, 10.9, or 10.12 are satisfied.† (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)

10.23 Livestock corporations. Section 12 "Sixth" of the Federal Farm Loan Act, as amended (39 Stat. 371, as amended; 12 U.S.C. 771 "Sixth"), permits Federal land bank and Land Bank Commissioner loans to be made to corporations engaged in the raising of livestock. No loans should be made to livestock corporations unless the corporation is primarily engaged in the raising of livestock. It may also be engaged in such general farming operations as are incidental to its livestock raising. If it engages in any secondary operations not strictly incidental to livestock raising, such secondary operations may constitute only a minor part of the corporation's activities. (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)

DEFINITIONS IN CONNECTION WITH LOANS FOR CERTAIN PURPOSES

10.36 "Equipment" and "Improvement" defined. For the purposes of section 12 "Fourth" of the Federal Farm Loan Act, as amended (39 Stat. 370, as amended; 12 U.S.C. 771 "Fourth"), the terms "equipment" and "improvement" are defined as follows:

(a) Equipment. The term equipment shall include implements appropriate for the operation of a farm, and may consist of teams as well as machinery, tools, and like articles.

(b) Improvement. The term improvement shall include any beneficial structure or any useful, permanent physical change tending to increase the productive value of the farm, such as clearing, tiling, drainage, fencing, building, and preparations for irrigation. (Sec. 6. 47 Stat. 14; 12 U.S.C. 665)

USE OF LOAN PROCEEDS

10.47 Agreement as to use of loan proceeds. Every mortgage given to a land bank shall contain an agreement by the mortgagor

Page 26

†For source citation, see note to § 10.7.

that the use of the funds borrowed for purposes other than those specified in his original application shall cause such mortgage at the option of the mortgagee to be immediately due and payable, unless the bank shall have consented to the use of the funds for some other purpose specified in the Federal Farm Loan Act. (Sec. 6, 47 Stat. 14, sec. 12 "Tenth", 39 Stat. 371; 12 U.S.C. 665, 771 "Tenth")

BASIS OF APPRAISAL

10.213 Normal agricultural value as basis of appraisal. The normal value of land for agricultural purposes shall be the basis of appraisal for loans by Federal land banks. For the purpose of such appraisal commodity prices received by farmers during the period from 1909 to 1914, with such adjustment as may be necessary because of the change in the economic position of particular products, shall be the basis for determining the earning power of farm land.† (Sec. 6, 47 Stat. 14, sec. 12 "Fifth", sec. 13 "Second", 39 Stat. 371, 372, as amended; 12 U.S.C. 665, 771 "Fifth", 781 "Second", and Sup.)

FARM UNIT

10.257 Farm unit; required area and yield of farm. The farm must be of sufficient area to yield at the hands of an ordinarily capable farmer, putting it to the use to which it is generally adapted, using average methods, and receiving normal prices, an income sufficient to maintain the family of the applicant, pay operating expenses and taxes, maintain the property, and discharge the interest and amortization payments on his loan.t (Sec. 6, 47 Stat. 14, sec. 12 "Fifth", 39 Stat. 371, as amended; 12 U.S.C. 665, 771 "Fifth", and Sup.)

COMPUTING MAXIMUM AMOUNT LOANABLE

10.321 Method of computing maximum amount loanable. In determining the aggregate amount of existing and prospective loans to any one borrower for the purpose of applying the limitation provided for in section 12 "Seventh" of the Federal Farm Loan Act (39 Stat. 371, as amended; 12 U.S.C. 771 "Seventh"), there shall be included (a) the amount of the unpaid principal of loans made by a Federal land bank which are secured by mortgages on property owned by the applicant, except loans secured by purchase money mortgages not made on a basis which qualifies them for deposit with the registrar as collateral security for farm loan bonds; (b) the amount of the unpaid principal of Federal land bank loans made to the applicant, or assumed by him with the permission of the bank, which are secured by mortgages on property he no longer owns, except loans secured by mortgages which have been assumed with the permission of the bank by a subsequent owner of the property in accordance with section 12 "Sixth" of the Federal Farm Loan Act (39 Stat. 371, as amended; 12 U.S.C. 771 "Sixth", and Sup.); and (c) the amount of the unpaid principal of mortgages which are liens on property owned by the applicant and which have been acquired by a Federal land bank under the provisions of section 13 "Second" of the Federal Farm Loan Act

[graphic]
« iepriekšējāTurpināt »