APPENDIX III. 



AGRICULTURAL BANK ACT, 1894, AMENDMENT ACT, 1896. 



Under these Acts advances can be made to holders of land in fee simple 

 special occupation lease, conditional purchase license, or under the provisions 

 of "The Homesteads Act, 1893." 



Advances. Advances are only made for the purpose of effecting improve- 

 ments, and no advance will be made upon any land which is otherwise encum- 

 bered, nor will any security over fee simple lands other than a first mortgage 

 be accepted as sufficient. When the proposed security consists of lands held 

 under special occupation lease or conditional purchase, the applicant will be 

 required to execute an absolute transfer of all his right, title, and interest in the 

 land, together with all improvements thereon, to the manager of the bank ; and 

 when the security consists of land held under the provisions of " The Homesteads 

 Act, 1893," the applicant will be required to transfer his interest to the Crown. 



Form of improvements. Advances are made for the purpose of effecting 

 either one or more of the following improvements : Clearing, cultivating or 

 ploughing, ringbarking, fencing, draining, wells of fresh water, reservoirs, 

 buildings, and any other form of improvement which, in the opinion of the 

 manager, will increase the agricultural or pastoral capabilities of the land. 



Proportion of value of proposed improvements to be advanced. In cases where, 

 in the opinion of the manager, ample security is offered, three-fourths of the fair 

 estimated value of the proposed .improvements may be advanced, but one-half is 

 the proportion generally allowed. 



Mode of payment of advances. All advances are paid proportionately as the 

 improvements are effected, i.e., applicants can have "draws " while the work is 

 proceeding. 



Rate of interest, Interest at the rate of five pounds per centum per annum 

 will be charged upon all advances, and must be paid half-yearly, on the soth 

 June and 3ist December in each year. Interest is only charged on the actual 

 amount of the advance made, or such proportion of the loan or loans as the 

 applicant may have drawn. 



Fees payable. All applications must be accompanied by a valuator's fee 

 equivalent to I per cent, of the amount applied for. No charge is made for the 

 purpose of drawing any mortgage or transfer, 



Repayment of loans. All loans have a currency of thirty years. During 

 the first Hive years simple interest only is payable. At the expiration of live years 

 from the 1st day of January or the 1st day of July, as the ease may be, following 

 the date of every advance, the borrower shall begin to repay the principal sum 

 at the rate of one-fiftieth of the amount half-yearly, until the whole Iras been paid. 

 Provided always, that the advance maybe repaid sooner than is herein provided, 

 and in larger instalments, at the option of the borrower. All applications must 

 be for one or more of the following sums, viz. : 50, 75, HH>, and extending 

 up to ;8oo. 



Further particulars and application forms may be had on application to the 

 Manager, Agricultural Bank, Perth. 



