This historic book may have numerous typos and missing text.
Purchasers can download a free scanned copy of the original book
(without typos) from the publisher. Not indexed. Not illustrated.
1917 Excerpt: ...bank is canceled and the stockholders in such
association would lose the amount paid for such stock and be liable
for another amount equal to the par value of their stock in such
association. In such case the total liability of a borrower is
equal to 10 per cent of the amount of his loan. In case of
insolvency of the Federal land bank through which the borrower has
made his loan, the stock owned by his association in such bank
would be worthless, and therefore every member of every association
who procured his loan from such bank would lose an amount equal to
5 per cent of his loan. (As to liability of stockholders, see par.
5, sec. 9; as to liability of farm loan associations, see sec. 25;
as to liability of Federal land banks, see sec. 21; and as to
insolvency of land bank or association, see sec. 29 of the Federal
farm loan act.) Duties of borrowers. Every borrower should
therefore be a watchdog of his association and prevent the making
of loans for a higher amount than the act permits. The only way the
safeguards of the act can be defeated is by dishonestly high
appraisements. The loan committee should be fair, but in no case
appraise the land and improvements offered higher than their fair
market value. The loss to the association of one bad loan may
destroy all prospect of the members ever receiving a dividend on
the stock of the association, and numerous bad loans would canse it
to become insolvent. If the stockholders in the association are
ever to receive any dividends on tllelr stock, then the expenses of
the association must be kept to a inin'ium and all possible losses
avoided. So far the biggest loss to the associations has been the
expense of the loan committee in appraising lands for loans which
were rejected either by the committee or the la...
|Country of origin:
United States Federal Bureau
||246 x 189 x 7mm (L x W x T)
||Paperback - Trade
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