Page:United States Statutes at Large Volume 39 Part 1.djvu/392

 SIXTY-FOURTH CONGRESS. Sess. I. Ch. 245. 1916. 371 Fifth. No such loan shall` exceed Efty per centum of the value of LIJ *’·*,*°¤,,°¤,, ”'“°,,, the land mortgaged and twenttg per centum of the value of the perma- °f nent, insured improvements ereon, said value to be ascertained by _ appraisal, as provided in section ten of this Act. In making said B°"“°'°PP“`°*“**· appraisal the value of the land for agricultural puiéposes shall e the basis of appraisal and the earning power of said land shall be a P*im"*°*°.r .,. . .. .. .. R, at .. rea rais ma rmitte at any time in the 'scretion 0 the. °°P °’ Federalllgnd bank, land gitich additional loan may be Qlanted as such dl mm reappraisal will warrant under the provisions of t `s paragraph. Whenever the amoimt of the loan applied for exceeds the amount that may be loaned under the appraisal as herein limited, such loan may be grantpld to the amount permiglted under the tergxs of this aragra wit out re um` `ng anew a 'cation or a rais. P Sixth? No such loax? shall be made its any person srllo is not at the ,,:.§’,§’,},‘,g:,§°'S °‘ time, or shortly to become, engz§ed in the cultivation of the farm mortgaged. In case of the sale the mortgaged land, the Federal land ank may permit said mortgage and the stock interests of the vendor to be assumed by the purchaser. In case of tb death of the mortgasgpr, his heir or hei1s,’or his legal. represuntative or tives, all have the option, within sixty days of such eath, to assume the mortgage and stock interests of the deceased. Seventh. The amoxmt of loans to any one borrowershall in no case ""“"“'“ ”“‘“’°‘* exceed a maximum of $10,000, nor shall any loan be for a less sum than $100. - . E' th: Every licant-for a loan under the terms of this Act shall ,,,,‘],§§' {QL P"°°°’“‘°" maklghplpplication aollpa form to he prescribed for that purpose by the Feder arm Loan Board, and such applicant shall state the ob'ects to which theproceeds of said loan are to be applied, and shall alford such other i ormation as may be required. Ninth. Every borrower sh l pay simple interest on defaulted pay- ,,}:_‘§}’,§'{‘,°}" °' ‘“°‘· ments at the rate of eight per centum er annum, and by express covenant in his mortgage deed shall unclhrtake to pay when due all taxes, liens, judgments, or assessments which may be lawfully assessed against the land mortgaged. Taxes, liens, judgments, or assessments not paid when due, and paid by the mortgagee, shall become a part of the mortgage debt and shall bear simple interest at _ the rate of eight per centum per annum. Every borrower shall under- I'”°"°" "`°°"°°‘ take to keep insured to the satisfaction of the Federal Farm Loan Board all buildings the value of which was a factor in determining the amount of the loan. Insurance shall be made payable to the mortgagee as its interest may appear at time of loss, and, at the option of the mortggagor and subject to general regulations of the Federal Farm Loan oard, sums so received may be used to pay for reconstruction of the buildings destro ed. _ Tenth. Every borrower who shall be granted a loan under the pro- ,,,f,g‘:;Y1‘§?:g°,Pw visions of this Act shall enter into an agreement, in form and under conditions to be prescribed b the Federal Farm Loan Board, that if the whole or any portion of his loan shall be expended for pourposes other than those s eciiied in his original application,. or if the rrower shall be in default in re act to an condition or covenant of the mortgage, the whole of said loan shall? at the opgpn of the mortgagee, _ become due and payable forthwith: Promkled, t the borrower may {.`,,"f,'§§;,, W ,_.,,,,,,,,_ USG part of said loan to ay for his stock in the farm loan association, ¤¤<¤¤ =¤>¢k·•¤= and the land bank holdlllg such mortgage mafy permit said loan to be used for any urpose specified in subsection ourth of this section. _ _ Eleventh. That no loan or the mortgage securing the same shall be V“‘°“’°"""“‘ impaired or invalidated by reason of the exercise o any power by any Federal land bank or national farm loan association in excess of the powers herein granted or any limitations thereon.