590 IOWA DEPARTMENT OF AGRICULTURE 



"Of these loans about 2,000 have had their first and second annual 

 payments mature, and of this number only thirty-nine, to this date, are 

 delinquent in their payment, and of these thirty-nine, only thirteen are 

 delinquent prior to December 1st last, and this is quite remarkable. 



"When the law was first adopted it was believed that local banks 

 and real estate mortgage brokers would oppose it, but it is found that 

 the banks now are generally in favor of it, and are quite generally assist- 

 ing their clients in procuring loans through this board. 



"On the other hand, real estate mortgage companies have suffered 

 a noticeable loss of business by reason of our operations, especially in 

 the western part of the state where mortgage loan 'sharks' have been 

 exploited and traded upon the needs of the farmers and ranchers of that 

 region." 



It should be noted that the plan for rural credit was under way 

 before the federal land bank act was enacted. "Because of the sim- 

 plicity of the proceeding and the quick action, and the fact that there 

 is no joint liability and no stock subscription, we seem to be securing 

 an apparent advantage over the federal plan." 



The system of rural credits was established "for the purpose of fos- 

 tering and encouraging agriculture, dairying and live stock raising in 

 the state of South Dakota and the development and improvement of farm 

 lands." 



A South Dakota rural credits board "shall consist of five members, 

 one of whom shall be the governor of the state, and four members ap- 

 pointed by the governor." 



"The board may lend money on, and take security for same, farm 

 lands, subjected to liens or assessments for drainage, reclamation or irri- 

 gation purposes, payable in installments, not due at the time of making 

 such loan, and the mortgage taken to secure the loan shall, notwith- 

 standing said liens or assessments, be deemed a first mortgage within 

 the meaning of this act, provided, however, that the amount of said 

 liens or assessments shall be considered by the board in determining 

 the amount to be loaned on such farm lands. 



"Such loans may be made for the following purposes and no other: 



"(a) To provide for the purchase of farm land; 



"(b) To provide for the purchase of equipment, fertilizers and live 

 stock necessary for the proper and reasonable operation of the mortgaged 

 farm land, the term 'equipment' to be defined by the board. 



"(c) To provide for the buildings and other improvements of farm 

 lands; the term 'improvements' to be defined by the board. 



"(d) To liquidate indebtedness of the owner of the land mortgaged 

 existing at the time of the organization of said board or indebtedness 

 subsequently incurred for purposes mentioned in this section. 



"No such loan shall exceed seventy (70) per cent of the value of the 

 land as ascertained and fixed by the board, plus forty (40) per cent 

 of the insured value of the improvements; provided, that for the purpoce 

 of this act the value of the improvements shall in no case exceed fifty 

 (50) per cent of the valne of the land; and provided, further, that in no 



