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Mail Tribune 100

March 3, 1917, continued

Editor’s note: There was no March 4, 1917, paper.


Instructions relative to receiving applications for farm loans under the state rural credits law were sent today by G. G. Brown, clerk of the state land board, to the board's attorney in each county in the state. O. C. Boggs of Medford is the board's attorney for Jackson county.

These attorneys are authorized to transmit in the board application for loans as soon as they receive the necessary blank forms, which will be within the next few days. It is expected that funds will be available and loans will be made before the end of the month. Attorney General Brown is now preparing the form of rural credits bonds to be issued. The board's instructions to its attorneys are as follows:

"The board has decided that the attorneys for the irreducible school fund shall also act in that capacity for the rural credits fund, and you are therefore authorized to accept applications under the provisions of the enclosed act.

"Inasmuch as the board is allowed to approve loans for one-half of the cash value, exclusive of improvements, instead of one-third, as in the school fund loans, it is desirable that you use caution in recommending loans.

"As the law requires that a certain portion of the principal be paid annually, you should inform the borrower that payments pf principal and interest must be paid and promptly on the date specified.

"The board has decided that principal payments must be the same amount each year, and for that reason, I would suggest that loans be made for 10, 15, 20, 25 or 30 year periods, so as to make the principal payments in even dollars if possible, and for even hundred or thousand dollar amounts, e. g., a $1000 loan for 10 years would require annual payments of $100, while for 25 years the annual payment would be $40.

"You might suggest to the borrower that the longer the term of the mortgage the smaller will be the annual principal payment and that any part of the principal, not less than $50 or a multiple thereof, can be paid on any amortization date."