PAGE 16
THE YANCEY REC Oft D
The basic objectives of Re
creation Loans by the Farmers
Home Administration are to
assist eligible farm and ranch
owners or tenants to convert
all or a portion of the farms or
ranches they own or operate to
outdoor income-producing re
creation enterprises. Loans to
establish recreation enterprises
are made to eligible applicants
in order to supplement or sup
plant their farm or ranch in
come.
To qualify for a FHA Rec -
reation loan, the applicant
must be an individual regular
ly engaged in farming at the
time he applies for the initial
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THE NORTHWESTERN BANK
Member FDIC
OCTOBER 7, lft7l
Farmers Home Administration News
loan; be the manager and oper
ator of the recreation enterprise
after the loan is made; be un
able with his own resources,
or be unable to obtain suffiefent
credit elsewhere, to finance his
own actual needs at reasonable
rates and terms, taking into
consideration prevailing pri
vate and cooperative rates and
terms in the community in or
near which he resides for loans
for similar purposes and periods
of time; be an applicant wlio
does not hare a reliable income,
including that of the spouse,
which provides a net income
equivalent to that of reasonably
successful farm families in the
area; be at least 18 years old
and a citizen of the U.S.
If the applicant has a relia
ble income, including that of
the spouse, which provides a
net income equivalent to that
of reasonably successful farm
families in the area he does
not qualify for a Recreation
Loan because he is already suc
cessfully established, except
that a successfully established
full-time farmer may qualify
for a Recreation loan to con
vert his total farming operation
to a recreation enterprise.
The applicant also must
have the character, ability,and
industry to carry out the pro
posed operation and honestly
endeavor to carry out the un -
dertakings and obligations re
quired of him in connection
with the loan.
The applicant should have
the training and experience
necessary to give reasonable
assurance of success in the pro
posed operation and if the ap
plicant is a tenant, he should
have a satisfactory written
lease for a sufficient period
of time and under terms that
will enable him to obtain rea
sonable return, on the improve
ments made with the Recrea -
tion loan.
The interest rate on the un
paid principal balance of the
Recreation Loan is 5 percent
annually. Loans secured by
real estate or a lease hold
will be scheduled for payment
over a period not to exceed 40
years or such shorter periods
as may be necessary to assure
the loan is adequately secured.
4H
CLUB
WEEK
SEPT. 30- OCT. 7