The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BANK OF NEW YORK r Circular No. 3 0 2 2 1 L November 9, 194S J FARM CREDIT FILE To All Banks and Trust Companies in the Second Federal Beserve District: About a year ago the New York State Bankers Association appointed a special committee for the purpose of devising a Farm Credit File which would be helpful to the banks operating in the agricultural districts. In this work the committee had the cooperation of the members of the Extension Service of the New York State College of Agriculture who had made an extensive study of the desirability of a file of this character. Helpful suggestions were also received from the various bank supervisory authorities. As a result a file has been developed which should prove of assistance to banks in maintaining adequate credit data to support the borrowings of their customers. The New York State Bankers Association has requested us to take over the distribution and servicing of the Farm Credit File for the banks in the State of New York. W e are pleased to comply with this request and also to extend this service to banks in the States of Connecticut and New Jersey which are in the Second Federal Reserve District, believing that it affords an opportunity to assist the smaller banks of the district in their function of serving agriculture. The file includes a special folder and the following forms: Title of Form Farm Credit Statement—Short Form Farm Credit Statement—Long Form Comparison Statement Livestock Appraisal Sheet Machinery & Equipment Inventory Schedule of Advances & Repayment Agreements Original History Sheet Supplemental History Sheet Certificate of Search Order on Proceeds of Produce Supplement to Farm Credit Statement Farm Real Estate Schedule New York State Bankers Association Form #1 #1A #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 A copy of the folder and of each of the above forms is enclosed. Enclosed also is an explanation of the file by Burr P. Cleveland, President of the First National Bank, Cortland, New York, who served as chairman of the committee of the New York State Bankers Association, and a suggested procedure for setting up the system which was prepared by the Committee. (OVER) Every effort was made by the committee to devise a file which would be sufficiently complete to serve every need and which, at the same time, would be simple and easy to operate. The folder refers to chattel mortgage, release of chattel mortgage and release of conditional sales contract, but forms of these documents are not included and will not be supplied by us since we cannot undertake, in behalf of the lending banks, to pass upon the adequacy or sufficiency of particular forms of legal documents. It is suggested that you consult your own counsel as to the proper forms of such documents to use in your State. In this connection, we are informed that the New York State Bankers Association recently transmitted to the banks in New, York State a brochure entitled "Agricultural Loans under the New York State Chattel Mortgage Law of 1945", by Alan J. Flattery, Chairman of the Subcommittee on Chattel Mortgage Law Revision of the New York State Bankers Association. This brochure contains a suggested form of agricultural chattel mortgage. Forms # 10 and # 11 provide for additional information which it is deemed desirable to obtain from orchardists and berry growers. It is our judgment that every bank should maintain credit files which include all or substantially all of the information contemplated by the folder. While some bankers having adequate knowledge of their customers and of local conditions may be able to operate with apparent success without the use of credit files, it is clearly in the interest of every bank to maintain complete credit files as a means of helping not only the officers but also the directors of the bank in reaching sound decisions when considering loan applications. The use of a credit file will not guarantee the quality of the loans made; that will still depend upon the judgment of the individual banker and his directors. However, the information which should be found in a properly maintained credit file, together with the banker's knowledge and judgment, should enable a bank to serve adequately the credit needs of its community and to grant borrowers the credit to which they are entitled without exposing the bank to undue risks. W e are now prepared to furnish the folder and the forms enumerated above upon the following basis: The folders will be furnished in any quantity at a prepaid cost of ten cents each. The forms will be furnished without charge to all banks. There is enclosed a requisition form on which you may indicate the number of copies of the folder and of each form which you estimate you will need for your current use. The folders and forms will be available separately or in sets at any time. ALLAN SPROUL, President. F E D E R A L RESERVE B A N K O F N E W YORK Form C R . 157-5M-10-45 ORDER FORM Farm Credit File DateFederal Reserve Bank of New York Federal Reserve P. 0. Station New York 7, New York Gentlemen: Please ship us the following forms for the Farm Credit File: Quantity .Manila Folders @ 10<t each .Farm Credit Statement—Short Form (No Charge) N. Y . State Bankers Ass'n. Form #1 Farm Credit Statement—Long Form (No Charge) N. Y. State Bankers Ass'n. Form #1A Comparison Statement (No Charge) N. Y. State Bankers Ass'n. Form #2 Livestock Appraisal Sheet (No Charge) Machinery and Equipment Inventory (No Charge) N. Y . State Bankers Ass'n. Form #3 N. Y. State Bankers Ass'n. Form #4 Schedule of Advances and Repayment Agreements (No Charge) N. Y . State Bankers Ass'n. Form #5 Original History Sheet (No Charge) Supplemental History Sheet (No Charge) N. Y . State Bankers Ass'n. Form #6 N. Y. State Bankers Ass'n. Form #7 Certificate of Search (No Charge) Order on Proceeds of Produce (No Charge) Supplement to Farm Credit Statement (No Charge) Farm Real Estate Schedule (No Charge) N. Y . State Bankers Ass'n. Form #8 N. Y. State Bankers Ass'n. Form #9 N. Y. State Bankers Ass'n. Form #10 N. Y. State Bankers Ass'n. Form #11 Check One: Check enclosed in payment for folders Charge our Reserve Account in payment for folders Very truly yours, BANK ADDRESS. (Official Signature) THE NEW YORK BANKERS FARM STATE ASSOCIATION CREDIT FILE • O What the File Is - How It Works as Explained by Burr P. Cleveland, Chairman of the Farm Credit File Subcommittee at the Fourth Annual Farm Credit School, Syracuse, New York, October 17th, 1944. -o- Committee on Agriculture NEW YORK STATE BANKERS ASSOCIATION 521 Federal Reserve Bank 33 Liberty Street - New York 5. N. Y. FOREWORD During the spring of 1944, the chairman of the Committee on Agriculture of the New York State Bankers Association appointed a subcommittee to develop a farm c r e d i t f i l e complete enough t o cover the essential Information about farm borrowers and simple enough t o be useful to every bank, large or small. The subcommittee Included Burr P. Cleveland, chairman, president of the F i r s t National Bank of Cortland; Dr. Van B. Hart, extension professor In farm management, New York State College of Agriculture, Ithaca; B.C. Rushlow, vice-president of the Watertown National Bank, Watertown, and Otis A. Thompson, president of the National Bank and Trust Company, Norwich, and past chairman of the Agricultural Commission of the American Bankers Association. The subcommittee was assisted In I t s work by the helpful suggestions of Frank W. Krippel, chief national bank examiner, Second Federal Reserve D i s t r i c t ; Charles H. Schoch, deputy superintendent, New York State banking Department, and Howard S. Lahman, acting supervisory examiner, Federal Deposit Insurance Corporation. S p e c i f i c a l l y , the f i l e was designed t o contain information about the f i n a n c i a l condition of a farmer, h i s progress from year t o year, an evaluation of h i s Income producing property, a record of loan advances, their purposes and plans f o r repayment, personal data about the farmer and h i s family, management f a c t o r s a f f e c t i n g h i s Income, and other essential Information. It i s considered that the forms when properly used furnish s u f f i c i e n t c r e d i t Information to reveal the true soundness of loans, serve t o minimize the work of a banker in setting, up adequate liquidation programs so that farm loans are paid out within a reasonable length of time, and minimize the p o s s i b i l i t y of loans being made out of proportion to a farmer's net worth and a b i l i t y to pay. WHAT THE FARM CREDIT FILE IS AND HOW IT WORKS by .Burr P. Cleveland, Chairman, Subcommittee on Farm Credit F i l e New York State Bankers Association The substance of Mr. Cleveland's remarks in.presenting the f i l e on October 17, 1944, at the Fourth Annual Farm Credit School of the New York State Bankers Association f o l l o w s : COMPARISON STATEMENT Turning to the f i r s t section of the f i l e , the f i r s t form you w i l l f i n d i s a comparison statement. The comparison statements which we have in our banks are f o r corporations or Individuals. Ttey do not f i t into a farm business. The committee took the farm c r e d i t statement of the Federal Reserve Bank and set up a comparison statement to conform with i t . There was added a schedule to show year t o year changes in "the number of horses, cows, young 'stock, poultry, e t c . , so that they can r e a d i l y be related to the values indicated in the statement. A c l e a r picture of the trend of these i s Important. Many times i t has been found that a farmer may increase h i s indebtedness with the bank, from year to year, and h i s l i n e w i l l show l i t t l e or no reduction. On the other hand, he may have g r e a t l y improved h i s net worth by adding to his l i v e s t o c k and equipment or Improved h i s land and buildings. SHORT FORM FARM CREDIT STATEMENT Following the comparison statement you w i l l f i n d a new short form farm c r e d i t statement suggested by the Federal Reserve Bank. This has been approved by the New York State Bankers Association and the College of. Agriculture. It contains, in the opinion of the committee, the information required t o set up the c r e d i t f i l e . You w i l l n o t i c e that t h i s new short form farm c r e d i t statement p a r a l l e l s the longer Federal Reserve statement, known as CR 114.1, with which you are no doubt f a m i l i a r , and that the comparison statement form Is adapted f o r use with either the long or short form. There has been sone c r i t i c i s m of the order in which the d i f f e r e n t items appear on the Federal Reserve farm c r e d i t statements. Many bankers have asked why these statements have not been arranged in the same manner as the corporation and personal statements; that i s , quick assets and l i a b i l i t i e s f i r s t , and f i x e d assets and f i x e d l i a b i l i t i e s In t h e i r regular order. In making up these farm statements, consideration has been given to the experience of the College of Agriculture In obtaining Information from farmers about t h e i r operations and business, and the items have been arranged In the order of the Importance placed on them by the average farmer. The Items on both the asset and l i a b i l i t y sides of the statements are, t h e r e f o r e , arranged in the order of t h e i r Importance t o the farmer. In other words, we have t r i e d to p r o f i t by the experience of the College of Agriculture in what i t has found t o be the best way t o obtain t h i s information from farmers. They have approached the problem, not from an accountant's viewpoint, but in a s c i e n t i f i c manner to get the most Information the e a s i e s t way. Did you ever take one of the regular form statements, and when interviewing a farmer on an a p p l i c a t i o n f o r a loan, f i r s t ask him how much cash he had on hand and in banks, and have him say to you, " I f I had cash in the bank I wouldn't be asking you f o r a loan?" Put yourself in the farmer's p o s i tion - wouldn't It be Just a l i t t l e disconcerting to have the f i r s t question asked, "How much cash and -3- s e c u r i t i e s have you?" — as being the f i r s t requisite f o r obtaining a loan, instead of what do you have Invested in your operations which makes you e l i g i b l e f o r a loan? in our studies we have found many very good farm statements being used at the present time by the banks in the s t a t e . However, some are too short and do not bring out the information required to comp l e t e the f i l e , while others, which contain a great deal of valuable Information, are too long and too complicated to expect a farmer to complete without the assistance of a bank o f f i c e r . If the statement you are using at the present time w i l l answer a l l of the questions asked f o r on t h i s "short form" farm c r e d i t statement, and your form i s more to your l i k i n g , we strongly recommend that you continue t o use i t . I t i s further recommended that the statements be completed and that none of the questions be l e f t unanswered. For example, i f the applicant has no cash value l i f e Insurance, therefore, no l i f e insurance loans, no other real e s t a t e , no Production Credit loans, the word, "none", should be written In the spaces provided f o r these answers. Do not leave blank spaces in f i l l i n g out the statement. Questions regarding location and description of r e a l estate, as well as the other questions at' the bottom of the statement are very important and should be answered in f u l l , as we shall see as we proceed with t h i s discussion. LIVESTOCK APPRAISAL SHEET The next form is a l i v e s t o c k appraisal sheet. This is designed f o r making appraisals mainly of c a t t l e but can Include horses, hogs and other animals. Experience indicates that, because of both normal and unusual turnover of l i v e s t o c k , i t is Important, e s p e c i a l l y in the case of large loans, to have l i v e s t o c k appraised regularly. Appraisals should be made when the loan originates and r e appraisals at the time of taking new statements or at renewal of a chattel mortgage. The e a s i e s t time to make re-appraisals is during the winter months when the stock Is housed. The committee considered at length how l i v e s t o c k should be appraised and came to the conclusion that, because of the p o s s i b i l i t y of rapid changes in market values, the l i v e s t o c k should be appraised at market value on the date of the appraisal. Keeping appraisal sheets over a period of years supplies a good record of the type of dairy a farmer maintains. It should, of course, be remembered that the chattel mortgage on stock and equipment Is only a protection against ultimate l o s s . I t does not provide f o r repayment of p r i n c i p a l , except by closing out the business. This, none of us want to do. In order t o properly evaluate the a b i l i t y of a farm business to repay a loan out of the operating income a detailed appraisal should be made of the dairy herd. Such appraisals should show the age of cows and number of young stock raised. It Is c l e a r that i f you went .to the average farm and took a l i s t of 30 or 40 cows, there wouldn't be any more chance of t h e i r being worth $75, $90, or $200 throughout the herd, than that they would a l l be the same age, weight, and markings, and have the same ear tag numbers. You would find some cows e a s i l y recognized as good producers and others with few accepted points. You would f i n d them running a l l the way from an e x c e l l e n t individual In the prime of condition and production down to a poor cow, nine years old and ready f o r b e e f . _4_ MACHINERY AND EQUIPMENT INVENTORY The next sheet i s a machinery and equipment inventory copied from a form in the College of A g r i c u l t u r e ' s Farm Inventory booklet. We b e l i e v e i t i s Important, f o r during the past f i f t e e n or twenty years, farmers have more machinery and need more machinery than in the past. They have an Investment which usually amounts t o 25 o r 30 percent of t h e i r net worth. Heretofore, we have been presenting i t in a round figure on the c r e d i t statement. We have had no indication of what goes to make up t h i s t o t a l nor the condition of the machinery. We should have a description of i t and the p r i c e at which the farmer i s carrying i t . Experience indicates that a farmer's estimate of the t o t a l value of h i s machinery i s l i k e l y to be conservative and also c l o s e to the figure obtained when a detailed appraisal i s made. I t i s important, however, to have the detailed information covering the price of the Individual Items, age and condition, to substantiate the figure that goes to make up t h i s 25 t o 30 percent of a farmer's net worth. I N F O R M A T I O N SCHEDULE OF ADVANCES AND REPAYMENT AGREEMENTS The f i r s t form under the heading of "Information'' Is a schedule of advances and repayment agreements. This Is f o r the purpose of c o r r e c t i n g one of the weaknesses of many farm c r e d i t f l i e s . I t i s not only necessary to have a repayment plan with a farmer, but to have a memorandum of i t . This i s not a ledger, f o r every bank has a l i a b i l i t y ledger. The schedule shows the purpose of the loan, from what income the fanner plans to pay i t back, and the amounts of the payments to be made. HISTORY SHEET The next form is the original history sheet. The committee has suggested the things i t f e l t should be in the f i l e f o r the b e n e f i t of the o f f i c e r s , d i r e c t o r s , and t h e i r successors. Most of the Information called f o r on the form is known to someone in the bank, but i t d e f i n i t e l y should be a part of the permanent records so that anyone can f a m i l i a r i z e himself with the farmer's a f f a i r s by a quick reference to the f i l e . The farmer's standing In the community and h i s attitude toward debts should be a matter of record. His a b i l i t y , experience, and business judgment are very Important t o the successful r e t i r e ment of h i s o b l i g a t i o n s . The family labor available and the health of his family are also'important f a c t o r s . A farmer may .have every good Intention of paying h i s o b l i g a t i o n s , but i f he is decidedly handicapped by any of these f a c t o r s , his good intentions may be obstructed. Space i s provided on the fonii f o r a description of the farm, the number of acres b e i n g / t i l l e d , the number of acres of pasture and woodland, and the present value of the farm. Location ; as t o market, general appearance and upkeep of the buildings and fences, land c l a s s , productivity and condition of s o i l , drainage, ease of operation, adequacy of pasture, timber, and f u e l , are further information which the form suggests; and information on f a c t o r s which experience Indicates are very Important In a f f e c t i n g the income a farmer makes. The adequacy and condition of equipment and probable necessary additions or replacements are called f o r . -5- The amount of f i r e , auto, hail and l i f e insurance should be stated In the space provided. I t is considered important that c a r e f u l attention be given to Insurance. Not only should the insurance be adequate, but in order t o be protected, a - l o s s payment clause should be issued in favor of the bank with respect to loans secured by a c h a t t e l mortgage, the p o l i c i e s should be held by the bank. Space i s provided f o r noting the c r e d i t sources which have been checked, and (missions of i t i e s or assets on the c r e d i t statement. liabil- The committee members have found that, not too infrequently, there have been times when l i a b i l i t i e s are omitted from c r e d i t statements; some probably are intentional and others are a matter o f oversight. A farmer frequently signs a property note on a car or a t r a c t o r and does not r e a l i z e the f a c t that the note or contract has been recorded. If a number of omissions a r e ' d i s c o v e r e d , i t i s a f a i r Indication that there may be other unknown matters. If t h i s information i s not put into the f i l e , there i s no record of i t . SUPPLEMENTAL HISTORY SHEET The supplemental h i s t o r y sheet provides a space t o record v i s i t s to the farm, Interviews at the bank, examiner's comments, loan committee's comments, e t c . Other information should be added as i t becomes available. The intention i s that most of the Information on the original history sheet w i l l be placed on i t when the loan is o r i g i n a l l y made and the supplemental history sheet w i l l be used as a continuing information sheet, M I S C E L L A N E O U S CERTIFICATE OF SEARCH The next form, c e r t i f i c a t e of search, has been found e s s e n t i a l . The c e r t i f i c a t e of search can e i t h e r be made by the banker or sent with a return envelope to the Town Clerk who w i l l usually f i l l out the form f o r twenty-five cents. It is preferable f o r the bank to make i t s own search, but in bad weather or If the place i s i n a c c e s s i b l e , i t can be done by mall. It should be done before the loan goes on the books. Provision i s made at the bottom of t h i s form f o r making a record of every c h a t t e l mortgage or conditional sales contract which the bank may take. Searches should be kept up to date by frequent checkings of the Town C l e r k ' s records. i s obvious and i f a routine i s established, It i s not d i f f i c u l t or expensive. The reason ORDER ON PROCEEDS OF PRODUCE The f i l e contains an order on the proceeds of produce, which i s made up, not only f o r milk, but f o r potatoes, apples, or anything e l s e the farmer might have. I t Is made up In duplicate, with one sheet marked d e a l e r ' s copy and the other i s the copy t o be returned to the bank. Experience indicates that one of the best ways t o set up a loan t o a dairy farmer i s on a third party order on the milk check. CHATTEL MORTGAGE FORM It i s useful to have chattel mortgages made out in quadruplicate. The " o r i g i n a l copy" is usually kept in the c o l l a t e r a l f i l e ; the "recording copy" is f i l e d with the Town Clerk; the "mortgagor's copy" is given to the borrower; and the " c r e d i t f i l e " copy Is f o r the c r e d i t f i l e . By having a copy in the c r e d i t f i l e , much time i s saved because i t becomes unnecessary t o go t o the c o l l a t e r a l record f o r this information when the f i l e is being reviewed, or when the farmer i s requesting additional c r e d i t . -6- LETTERS REQUESTING CREDIT STATEMENTS Two l e t t e r s are suggested f o r requesting statements from borrowers. It i s considered good pract i c e t o send out statement requests on the f i r s t business day of January each year. The reasons f o r t h i s are — that Income tax forms go out about that time; many farmers f o l l o w the p r a c t i c e of taking an annual inventory as of the f i r s t of the year; farmers learn to expect requests f o r c r e d i t statements at that time; and further at that time of the year, they are not as busy as they are at others and. can give more time to making out a c r e d i t statement. A follow-up l e t t e r i s suggested In case the f i r s t l e t t e r does not bring the desired r e s u l t . These l e t t e r s are only suggestions. can be Improved upon. A l l banks have t h e i r own ideas and the l e t t e r s , no doubt, DISCHARGE OF CHATTEL MORTGAGE AND RELEASE OF CONDITIONAL SALES CONTRACT The holder of a chattel mortgage Is required by New York State Law, upon request of the mortgagor or any person interested In the mortgaged property, to sign and acknowledge a discharge and also p r o vide f o r the f i l i n g of the discharge. The Personal Property Law of New York requires the s e l l e r to execute a release f o r a conditional sale when the debt is paid, and the burden is on the s e l l e r to do so within ten days, even without the request of the buyer. MAKING IT WORK As you look at the c r e d i t f i l e you may say, "That i s about the most complicated thing I have seen and you c a l l i t a s i m p l i f i e d f i l e . " Let us review the e s s e n t i a l s . We think you w i l l a l l agree that we should have a comparison statement and that It should be kept up to date. The short form farm c r e d i t statement contains essential information needed to give a true f i n a n c i a l picture of the farmer and his business. Every item on the farm c r e d i t statement has a d e f i n i t e bearing on the farmer's f i n a n c i a l condition and, therefore, It i s recommended that every space be f i l l e d in and that none of the questions be l e f t unanswered. The appraisal of the l i v e s t o c k i s Important. appraisal sheet. There is nothing complicated about the l i v e s t o c k The machinery and equipment form w i l l substantiate the d o l l a r amount In the c r e d i t statement under t h i s heading. This form doesn't take much time and i t is valuable information to have. A record of the farmer's repayment plan i s one of the most important pieces of Information to have In a c r e d i t f i l e . The schedule of advances and repayment agreements provides this much needed record. Most bankers have the information to be placed on the h i s t o r y sheet and more in t h e i r heads. They know what kind of a farmer they are doing business with and how he pays, but regardless of the size of the bank, t h i s i s just the information that should be in a c r e d i t f i l e , not f o r the bank -7- examiners, but f o r the bank. If an o f f i c e r leaves the bank or passes on, the loans have to be handled by others. The plan i s t o put the information on paper. The c e r t i f i c a t e of search and order on the proceeds of produce are convenient t o o l s which a l l banks w i l l want. The form l e t t e r s requesting statements are probably similar to those which most of you are using at the present time in one form or another. I t should be re-emphasized that the f i r s t time one sees the c r e d i t f i l e he may consider i t quite complicated. If you look Into i t , you w i l l , no doubt, agree i t contains a minimum of Information. A banker can keep the f i l e with a p e n c i l i f he doesn't have a stenographer available f o r the work. It i s amazing the meagerness of the c r e d i t information on which some loans are made. There are banks in New York State which haven't been In the agricultural c r e d i t business extensively and they are now going into i t when there are somewhat i n f l a t i o n a r y p r i c e s . Adequate c r e d i t information Is now needed more than ever. It seems to the committee that t h i s f i l e provides about the bare e s s e n t i a l s . The committee, which prepared t h i s f i l e , b e l i e v e s there are probably loans on the books of banks that, i f the banks had the Information c a l l e d f o r In t h i s f i l e , would not have been made or they would be quite concerned about them and do what they could reasonably do to obtain reductions or additional security. On behalf of Otis Thompson, B.C. Rushlow, Dr. Hart, and myself, I wish t o express our appreciation to Mr. Krlppel, Mr. Schoch, Mr. Lahman, the o f f i c e r s of the Federal Reserve Bank of New York, and the s t a f f of the New York State Bankers Association, f o r giving so generously of their time and also f o r t h e i r many, very valuable suggestions and advice, given the committee while preparing this f i l e . This f i l e has the endorsement and recommendation of the Agricultural and Bank Management Committees of the New York State Bankers Association. I f you are not using a similar f i l e , the Committee i s confident that your bank w i l l take a d e f i n i t e forward step by using It completely on your farm loans of over $500. Many of the forms may be used to advantage on loans of less than $500. o o CREDIT FILE MEMO This Credit File Memo is not listed on the order blank for farm credit file forms. It is expected that banks which do not already have a similar form will want to have a form of this nature prepared by their local printers. The memo practicability of on which to jot many cases will is included in this sample file merely as a reminder of the having on each loaning officer's desk a memorandum pad updown information about borrowers. The information in be transcribed the next day on the Schedule of Advances and Repayment Agreements, Original History Sheet, Supplemental History Sheet, or one of the other forms in the file. In some cases the information cannot appropriately be transcribed to another form in the file, in which event the credit file memorandum will be filed in the information section of the file. DATE SIGNED PROCEDURE SUGGESTED BY THE FARM CREDIT FILE SUBCOMMITTEE FOR SETTING UP FARM CREDIT FILES Preliminary Steps 1. Place a marker on or set out the liability ledger sheet or card for all lines of credit to farmers of $500 or more. 2. Prepare tabs showing the name and address of each borrower of $500 or more and affix them to credit folders. 3. Transfer the figures from the current year's financial statement and the statements of the preceding two years to a comparison statement, NYSBA farm credit file form number 2. Place the financial statements which the bank has on hand and the comparison statement in the file. 4. Show on the schedule of advances and repayments, NYSBA farm credit file form number 5, to the extent the information is available, the present amount of each loan making up the farmer's total liability, the date and purpose for which the money was borrowed, from what income the farmer plans to pay it back, and the amounts of the payments to be made. 5. Place in the file copies of milk check and other assignments, NYSBA farm credit file form number 9, as well as similar assignment forms. Also place in the file correspondence which the bank has had with the farmer. 6. If the loan is secured by a chattel mortgage, place a copy of the chattel mortgage in the file. After the preliminary steps have been accomplished, additional steps should be completed as soon as circumstances permit. Six to eight months might be allowed for completion of the following additional steps: Additional Steps 7. Prepare an original history sheet, NYSBA farm credit file form number 6. 8. Start a supplemental history sheet, NYSBA farm credit file form number 7. On this sheet will be recorded recent visits to the farm, discussions with the farmer in the bank, examiners' comments, loan committee comments, and the like. 9. When an appraisal is made of the farmer's livestock, place a livestock appraisal sheet, NYSBA farm credit file form number 3, in the file. 10. Make a search of the town clerk's records and show on a certificate of search, NYSBA farm credit file form number 8, any chattel mortgages, conditional sales contracts, judgments, or other actions filed against the farmer. 11. Place in the file an inventory of the farmer's machinery and equipment on NYSBA farm credit file form number 4. In order to assure completion of the file within a reasonable time, it is suggested that three or more files be completed each week. Recognizing what is everyone's business is no one's responsibility, it is recommended that one person be made responsible for the completion of the required number of files each week. When the file is completed, the information should be kept up to date. This should be accomplished through a systematized procedure. One convenient tool for regular use is a credit memorandum pad upon which officers and staff members jot down information for the file as it comes to their attention. The statement of procedure also appears on the back cover of the folder. Farm Credit File T h e contents of this file are intended to provide the maximum of information with a minimum of time and effort. Forms included or forms somewhat similar are now being successfully used by c o m mercial banks or other credit agencies. Statements Comparison Statement: ^ This statement, which is prepared f r o m data extracted f r o m the credit statements ('Cr. 151 and Cr. 114.1) will permit a quick comparison of the customer's financial condition over a period of years. W h e n the file is originally set up, it is suggested that, if available, information f r o m credit statements f o r the current year and two preceding years be copied on this f o r m . Farm C r e d i t Statement: These are the standard short and long forms approved by the Federal Reserve Bank of N e w Y o r k , the N e w Y o r k State Bankers Association and the Extension Service of the N e w Y o r k State College of Agriculture. It is suggested that the borrower be encouraged to retain copies o f the Farm Credit Statement. Livestock Appraisal Sheet: Designed f o r use in making current appraisals of livestock. Experience indicates that because of both normal and unusual turnover of livestock, it is important, especially in cases of large loans, to have livestock appraised at regular intervals. Appraisal should be made when the loan originates and at the time of taking new statements or at renewal of chattel mortgage. T h e easiest time to make appraisals is during the winter months when the stock is housed. Machinery and Equipment inventory: T h i s f o r m is copied f r o m the current farm account book, " F a r m Inventory for Five Y e a r s " , published by the N e w Y o r k State College of Agriculture. Information Schedule of Advances and Repayment Agreements: Shows dates of advances, credit line to date, purpose f o r which money was borrowed, and agreements f o r repayment. Dates of present advances, purposes of loans, and repayment agreements should be filled in to date and similar information added when additional advances are made. History Sheets: These show the personal information about the available. borrower that experience indicates should be Much of the information called f o r on these f o r m s is usually known to the banker, but is not a matter of written record. It is suggested that these forms be filled in as completely as possible and future information be added as it becomes available. Space is provided for recording on the original history sheet information about "insurance". It is considered important that careful attention be given to this. Not only should the insurance be adequate but in order to be protected, a loss payment clause in favor of the lender should be included in the policy with respect to loans secured by a mortgage, which policy should be held by the bank. * Also designated as N. Y. State Bankers Assn. farms #1 and 1A respectively, Miscellaneous Certificate of Search: For search made by either a town or county clerk or other local filing or recording officer or a bank official. This form includes a section labeled "Continued Search" for bringing an original search up to date. Experience indicates that frequently borrowers are not aware of the fact that chattel mortgages, conditional sales contracts, judgments, or other liens affecting their property, may have been filed or recorded. Checking town and county records before making advances informs the bank whether the property is free and clear. The continued search should include all mortgages given to the bank with date of lien and date of filing or recording. O r d e r on Proceeds of Produce: For taking "third party orders" on milk checks, or proceeds of crops. This form is acceptable to the majority of dealers and experience indicates that one of the best ways to be assured of a regular reduction on a farm loan is through a milk order or an order on sale of produce. The order should be executed in duplicate, one copy for the dealer and one copy to be returned to the bank. Chattel Mortgage: Forms of chattel mortgage should be prepared in quadruplicate to provide a separate copy, in different colors, if possible, for filing or recording, collateral files of bank, credit files of bank, and copy for borrower. The bank should consult its own counsel as to the legal sufficiency of the form of chattel mortgage used. Letters, Discharges, Releases Letters Requesting Credit Statements: Note that one letter refers to enclosure of credit statement forms and the other is a follow-up letter. It is suggested that two copies of the credit statement form be sent to each addressee, one of which when completed may be retained by him. Many farmers are now following the practice of taking an annual inventory as of the first of the year for income tax and other purposes. It is suggested that requests for new credit statements be mailed on or about the first of each year. Experience shows that if this is done regularly, the farmer becomes accustomed to filing his annual credit statement. Discharge of Chattel Mortgage and Release: The laws of certain states require the holder of a chattel mortgage, upon the request of the mortgagor or any person interested in the mortgaged property, to sign and acknowledge a certificate of payment or satisfaction of the mortgage, and also provide for the filing thereof. Forms of discharge of chattel mortgage may be obtained from the bank's counsel or law stationer. A cknowledgmen t On behalf of the New York State Bankers Association, acknowledgment is made of the contributions to this folder by supervisory authorities associated with the Office of the Comptroller of the Currency, the State Banking Department, the Federal Deposit Insurance Corporation, and Dr. Van B. Hart, professor of farm management, New York State College of Agriculture. SEE BACK COVER FOR SUGGESTED PROCEDURE IN SETTING UP THESE FILES. I Federal Reserve Bank of N e w Form CR 1 6 5 — 1 5 M - 1 0 - 4 5 York Q c COMPARISON BORROWER P. STATEMENT AGE O. IN T O W N FARM PURCHASED NAME ADDRESS FARM WIFE'S N e w Y o r k State Bankers Association F a r m Credit File — F o r m N o . 2 OF COUNTY 19 PRICE INSP. VALUE ORIG. R/E DEBT. A S S E T S FARM OTHER R. E. T R U C K S . T R A C T O R S 8C A U T O S MACHINERY EQUIP, & * LIVESTOCK CROPS 8c S U P P L I E S RECEIVABLES CASH VAL. L. INS. INVESTMENTS CASH OTHER TOTAL ASSETS LIABILITIES MORTGAGE OTHER R. ON E. FARM MORT'GS. NOTES T O DEALERS AND MERCHANTS T O BANKS T O P. T O OTHERS C. ACCOUNTS UNPAID A. PAYABLE TAXES & INT. L O A N S FROM LIFE INS. C O S OTHER TOTAL LIABILITIES N E T W O R T H NUMBER Cows YOUNGSTOCK POULTRY HORSES NUMBER NUMBER NUMBER NUMBER H Y. STATE BANKERS ASSN. FORM #1 C R . 151 25M 11-44 P A * M ( M D F L & L E F o r m S u g g e s t e d b y F e d e r a l R e s e r v e B a n k of N e w Y o r k SHORT FORM FARM CREDIT STATEMENT w OF BUSINESS ADDRESS TO B A N K OF I, the undersigned, make the following statement of all my assets and liabilities at the close of business on the date named below and give other material information for the purpose of obtaining from you advances on notes and bills bearing my signature or endorsement, and for obtaining credit generally upon present and future applications. FINANCIAL CONDITION A T CLOSE OF B U S I N E S S ASSETS ( W H A T I OWN) ON T H E DAY Omit Cents 19 LIABILITIES ( W H A T I OWE) $ Farm Lands and Buildings OF Mortgages on Farm * $ Other Real Estate Mortgages on Other Real Estate Trucks, Tractors and Automobiles Notes Payable to Dealers and Merchants Other Farm Machinery and Equipment Notes Payable to This Bank Cows a oi h a a < Omit Cents Notes Payable to Other Banks No. (If covered by security describe on back) (If covered by security describe on back) Breed Bulls No. (If covered by security describe on back) Notes Payable to Production Credit Assn. Breed (If covered by security describe on back) w Heifers and Yearlings Notes Payable to Relatives and Friends o f, Calves Notes Payable to Others S t> / Poultry Z c c« w > J Q w No. Breed No. (If covered by security describe on back) Breed No. (If covered by security describe on back) Balance Due on Trucks, Tractors, Automobiles Breed Horses Not shown above No. Breed Accounts Owed by Me, N o t Covered by Notes No. Breed Rents, Interest and Taxes Due but Unpaid Farm Products on Hand for Sale Judgments Against Me (List on back) Loans on Life Insurance Feed, Seeds, Fertilizer, Supplies, Etc. Not shown above Amounts Owed to Me, G o o d and Collectible Other Debts (Include milk check due) Cash Surrender Value of Life Insurance O U Stocks, Bonds, Certificates of Indebtedness Cash on Hand and in Banks Personal Property and Other Assets Total Liabilities V) s NET W O R T H </i -1 -J Total Assets Total Liabilities and Net Worth LOCATION A N D DESCRIPTION OF F A R M : Located in Town of d E W V) < w h J on Road , State of , miles from nearest village or city, which is Assessed tax value: $ Kind of road: , County of Annual real estate taxes: $ Land class: Total acres: No. of acres cultivated: Name and location of milk plant used: - T I T L E TO F A R M A N D OTHER R E A L E S T A T E : The legal and equitable title to all the real estate listed in this statement is solely in my name, except as follows: - F I R E I N S U R A N C E : Main dwelling: $ , main barn: $ , other buildings: $ produce: $ , machinery: $ , household goods: $ L I A B I L I T Y I N S U R A N C E (Auto and Truck): Personal injury: $ , livestock: $ , , auto and truck: $ property damage: $ L I F E I N S U R A N C E : Face amount of policies: $ Name of insured: Name of beneficiary: Name of insurance company: PLEDGE OF F U T U R E I N C O M E : I have pledged my future income as follows: Canning crops $ Milk check $ To whom pledged: OTHER I N F O R M A T I O N : I am also liable on endorsed notes for $ Wife's name: My age is Married or single Number of dependents I hereby certify that the figures, information and statements contained on this sheet have been read by me before signing and are true and give a correct showing of my financial condition on the date stated. http://fraser.stlouisfed.org/ Signed this Federal Reserve Bank of St. Louis day of , 19 Name: N. Y. STATE BANKERS ASSN. rCFH ' U F o r m C R 114.1- 15M-5=i5. w m „ m ?orm Suggested by Federal Reserve Bank of New York. ' zw*i F A R M C R E D I T S T A T E M E N T OF BUSINESS -ADDRESS TO BANK OF I, the undersigned, make the following statement of all my assets and liabilities at the close of business on the date named below and give other material information for the purpose of obtaining from you advances on notes and bills bearing m y signature or endorsement, and for obtaining credit generally upon present and future applications. I • G a. o u Ck ex < FINANCIAL CONDITION A T CLOSE OF BUSINESS ON T H E . ASSETS ( W H A T I O W N ) Farm Lands and Buildings A t present reasonable value Omit Cents — D A Y OF 19. LIABILITIES ( W H A T I O W E ) ' Mortgage Loans on Farm $ $ Other Real Estate Mortgage Loans on Other Real Estate Trucks, Tractors and Automobiles Balance Owing on Land Contract Other Farm Machinery and Equipment fi Notes Payable to Dealers and Merchants Not covered by security W § r • B Omit Cents Notes Payable to Dealers and Merchants Covered by security described below; Pure Bred Cows No. Breed Grade Cows No. Breed Pure Bred Bulls Notes Payable to Banks a Grade Bulls Notes Payable to Banks 02 Heifers and Yearlings a W H O « 55 0 C O 1 No. Breed No. « No. Breed Covered by security described below: Breed Calve3 No. Breed Sheep No. Notes Payable to Production Credit Assn. Breed Hogs No. Covered by security described below: Breed Laying Hens—Roosters No. Breed Pullets No. 8 C Q J < H Not covered by security Broilers No. Not covered by security Notes Payable to Relatives and Friends Covered by security described below: Breed Chicks No. Breed Other Poultry No. Notes Payable to Relatives and Friends Breed Description Notes and Loans Payable to Others Not covered by security •J CM s o u Horses No. Notes and Loans Payable to Others Covered by security described below: Breed Harvested Crops Held for Sale Harvested Crops for Farm Use Accounts Owed by Me w u Growing Crops Rent Owed by Me cu Feed, Seeds, Fertilizer, Supplies, etc. Interest Owed by Me, Due but Unpaid J J ^ Amounts Owed to Me Taxes and Assessments Cash Surrender Value of Life Insurance Storage Owing on Goods in Warehouses B Stocks, Bonds, Certificates of Indebtedness, etc. Loans from Life Ins. Co's. on Life Policies a Cash on Hand and in Banks Other Debts H C Q Personal Property and Other Assets CO CO N o t covered b y n o t e s Due but unpaid At cost Good and On mortgages, loans, notes, etc. Due but unpaid collectible Payable before release of goods A t present m a r k e t value I n c l u d i n g s a v i n g s accounts Description: Total Liabilities I 0- $ $ Net Worth Total assets less total liabilities Total Assets Total Liabilities and Net. Worth S CONTINGENT LIABILITIES: Unpaid notes endorsed or guaranteed by me $ contingent liability, not included above, amounts to $ (Continued on other side) s ; other direct or and consists of the following: (Continued from other side) LOCATION A N D DESCRIPTION OF FAft^ v Located in Town of on Road , County . , State of , Land class: . miles from nearest village or city, which is Assessed tax value: $ Total acres: Kind of road: Number of acres cultivated: Name and location of milk plant used: TITLE TO FARM A N D OTHER REAL ESTATE: The legal and equitable title to all the real estate listed in this statement is solely in the name of the undersigned, except as follows: FIRE INSURANCE: Main dwelling: $ produce: $ , machinery: $ , main barn: $ , household goods: $ , other buildings: $ , livestock: $ , auto and truck: $ LIABILITY INSURANCE (Auto and Truck): Personal injury: $ , , property damage: $ LIFE INSURANCE: Face amount of policies: $ Name of beneficiary: Name of insured: Name of insurance company: T A X E S (Last Tax Year): State, County & Town: $ , School: $ , other real estate taxes: $ PLEDGE OF FUTURE INCOME: I have not pledged my future income, except as follows: Canning crops $ Milk check $ To whom pledged: SUITS, JUDGMENTS & OTHER LEGAL ACTIONS: I have outstanding or pending against me no suits, judgments or other legal actions, and to the best of my knowledge no legal actions are to be started against me, except as follows: PERSONAL S T A T U S : I am aged Wife's (or husband's) name: years. Marital status (single, married, etc.): No. of dependents: The following members of family help on farm: OTHER BUSINESS INTERESTS: I have no business interests other than my farm, except as follows: CROP OPERATIONS: LAST CROP ' Kind of Crop YEAR T H I S CROP •Yield Acres Per Acre Total Sales Total Crops Growing or to be Grown Acres YEAR •Expected Yield Per Acre ri$pected Sales Total $ $ •Stated in appropriate units, such as tons, bushels, pounds, etc. (THE FOLLOWING INFORMATION SHOULD BE FURNISHED IF A V A I L A B L E ) CASH INCOME & OUTGO DURING PAST YEAR, beginning ,19 and ending 19 C A U T I O N : List below only actual cash which came in or went out last year. Do hot list parts of purchases unpaid for on above date. CASH INCOME DURING CASH OUTGO DURING PERIOD Sale of: Crops Livestock Milk Other Dairy Products Eggs ...'.: Poultry Other Farm Products Real Estate Securities PERIOD Fertilizer Seed Spray Material Labor Feed Hay and Straw Fuel and Oil Packages Livestock and Machinery ... Repairs and Improvements. Interest Taxes Insurance Rent Paid on Loans Paid on Mortgages Cash received from: Outside Work Government Payments Interest Bank Loans Other Loans Other Cash Income (describe) Living Expenses Other Cash Outgo Total Cash Outgo Total Cash Income I the undersigned, hereby certify that the figures, information and statements contained in this credit statement, both printed and written, have been carefully read by me before signing and are true and give a correct showing of my financial condition on the date steted ln the event of any material change in my financial condition, I- agree to notify said bank immediately in writing. Signed this ." day of 1? (If this is a joint http://fraser.stlouisfed.org/ statement, all persons at interest should sign.) Federal Reserve Bank of St. Louis .Signature: Signature: Federal Reserve Bank of New York Form C R 164—15M-10-45 LIVESTOCK APPRAISAL SHEET New York State Bankers Association Farm Credit File Form No. 3 Address. Name- Identification Ear Tags, Color, etc. Breed and Kind Age Estimated Present Market Value S TOTAL Above Livestock appraised by me on Signed 19 $ •deral R e s e r v e B a n k o f N e w irm C R O York Q NAME. DESCRIPTION 'agonsand Wagon MAKE AND harness Wagon NO. AGE OR YEAR BOUGHT VALUE COST 19 MAKE DESCRIPTION AND A m o u n t Forwarded Other machinery P o t a t o planter P o t a t o digger H a y racks C a b b a g e setter M a n u r e spreader Bean puller Harness L i m e sower Dairy e q u i p m e n t Milking machine Walking p l o w M i l k cooler Sulky p l o w Separator T r a c t o r disc Cans, pails, strainers D i s c harrow Clippers Spring-tooth harrow Pouitry e q u i p m e n t Incubator Spike-tooth harrow Brooder houses Cultivator 1-horse Brooder stoves Cultivator 2-horse Feed hoppers Roller Watering equipment aying m a c h i n e r y Mower E g g crates, cartons D u m p rake R/!isceilaneous Buzz saw Side-delivery rake Sugaring equipment H a y loader Small shop tools H a y tedder Feed grinder Hay fork and rope Other »rn m a c h i n e r y Corn planter Corn binder Ensilage cutter Corn sheller Total iail-grain machinery Zlrain drill Power Tractor drain binder Truck Thresher-combine - a n mill Amount Forwarded Association F a r m Credit File — F o r m N o . 4 .ADDRESS. Sleigh, sleds lows a n d c u l t i v a t o r s Tractor plow N e w Y o r k State Bankers MACHINERY AND EQUIPMENT INVENTORY 163—1SM-10-45 A u t o (farm share) T o t a l (Trucks, Tractors, Autos) Inventory taken b y Date. NO. AGE OR YEAR BOUGHT COST VALUE 19 N. Y. S T A T E B A N K E R S ASSN. F A P M C P ^ D ' T m Form CR 115 SUPPF - M E N T TO FARM CREDIT (Form Suggested by Federal Reserve Bank of New NAME FORM #10 ~TATEMENT _ _»k) ADDRESS TO r BANK OF I, the undersigned, give the following material information to supplement the Farm Credit Statement showing my financial condition at the close of business on the day of GENERAL INFORMATION HARVESTED CROPS HELD FOR SALE Name of Each Crop •Quantity 19 HARVESTED CROPS FOR FARM USE Present Selling Value •Per Unit $ Name of Each Crop Total Present Selling Value •Quantity •Per Unit $ $ Total $ * Use appropriate units, such as tons, hundredweights, bushels or pounds, etc. FEED, SEEDS, FERTILIZER, SUPPLIES, etc. Description of Each Item Quantity (List principal items, use both columns if necessary.) Cost Per Unit $ Total Cost Description of Each Item Cost Per Unit Quantity $ $ Total Cost $ TRUCKS, TRACTORS, AUTOMOBILES and OTHER FARM MACHINERY and EQUIPMENT (List of principal pieces.) Description _ (Include, when possible, details of size, make, model, etc.) Age Present Condition Cost When New $ Balance Owing $ During the next year I expect to buy the following trucks, tractors, autos or other machinery and equipment: CR 115—20M—10-39 Present Value $ . BANKING RELATIONS (A list of all bar counts including savings accounts.) Cash Balance N a m e and Address of Bank Loans H o w Loans are Endorsed or Secured $ $ STOCKS, BONDS, CERTIFICATES OF INDEBTEDNESS and OTHER SECURITIES OWNED Face Value (Bonds) N o . of Shares (Stocks) Description Present Market Value Cost $ Interest or Dividends Rec'd. Last Y e a r $ T o W h o m Pledged $ ACCOUNTS, NOTES and LOANS RECEIVABLE—GOOD and COLLECTIBLE (A list of the largest amounts owed to me.) Amount Owing Name and Address of Debtor A g e of Debt Reason f o r the Debt Date Payable Description of Security $ ACCOUNTS, NOTES and LOANS P A Y A B L E (A list of my principal debts, other than mortgages.) Amount of Debt T o W h o m Debt is O w e d ( N a m e and Address) A g e of Debt Description of Security Given Reason for the Debt Date Payable $ CONTRACTS or AGREEMENTS to B U Y or SELL Crops, Livestock, Poultry, Equipment, Real Estate, etc. Are You Buying or Selling? Agreement W i t h (Name) Description of W h a t is being Bought or Sold Date to be Delivered Price Description Quantity Date to be Paid F o r $ PROPERTY RENTED or LEASED FROM OTHERS No. of Acres Description of the Property Rent per Y e a r Rent Paid Until Prop'ty Rented Until Rent per Y e a r H o w Used Rent Paid Until P r o p ' t y Rented Until $ PROPERTY RENTED or LEASED TO OTHERS N o . of Acres Description of the Property H o w Used $ REAL E S T A T E OWNED, OTHER THAN FARM Location and Description (List each parcel separately across sheet as No. 1, 2, 3, etc.) A g e and Condition Cost with Improvements $ 1 Assessed Value $ Fire Insurance $ Estimated Present Value $ 2 3 4 FIRST Amount 1 Maturity Date $ SECOND MORTGAGE Amount Name of Mortgage Holder MORTGAGE Maturity Date N a m e of Mortgage Holder $ 2 3 4 1 DAIRY SIZE A N D PRESENT STATE OF Number of: cows milking JRD , cows dry DETAILED INVENTORY OF HERD Kind of Animal (cow, bull, heifer, etc.) INFORMATION , herd bulls , other young stock. (List and describe each animal separately.) Pure Bred or Grade Breed , heifers over 1 yr. old Identification Yearly Milk Production (Pounds) Age Check if Mortgaged (/) Value 3 1 DISEASES (State below whether herd is fully accredited for each of following diseases: (1) Tuberculosis, (2) Bang's Disease. If not accredited, state the number of clean tests of entire herd for each disease. Also state condition of herd in regard to Mastitis.) (If herd did not test clean in last tests, furnish following information:) Number of Cattle Tested Date of Last Test Disease for Which Tested No. of Positive or Suspicious Reactors Number of Cattle Condemned Amount of Indemnity Awarded $ Tuberculosis Bang's Disease $ MILK PRODUCTION A N D S A L E : Grade of milk (A or B ) : Present daily production: Amount of milk checks during last 12 months: Month January February March $ Milk sold to April May June pounds. (Fill in spaces below.) Month Check 19 19 19 Average butterfat: cans. Average yearly production per cow: Check 19 19 19 $ Month Check July 19 August 19 September 19 $ Month October November December Check 19 19 19 $ FEED A N D BEDDING Hay Silage Grain Straw Grown on My Farm During Last Crop Season No. of Acres No. of Tons Bought from Others During Last Twelve Months No. of Tons Total Cost $ On Hand at Present Time No. of Tons Value per Ton $ OULTRY p- INFORMATION o )PERi EXTENT AND NATURE OF POULTRY OPERATIONS: (State whether poultry raising is a small or large part of your total farm operations; also, kind and breeds of poultry kept, and the size of the flock at various times of the year. If your poultry operations are large, state number of years you have been operating on the present scale, and the extent to which you specialize in raising chicks for sale, raising birds for sale for meat, producing eggs, etc. State extent to which you grow own poultry feed.) SALE OF POULTRY PRODUCTS: (State to whom and under what general arrangement you sell your eggs, broilers and other poultry products.) RECENT OPERATIONS AND PRESENT CONDITIONS: Number of birds in laying flock at present: per day being obtained at present: Price per dozen eggs now being received: in laying flock during past year: Number of eggs Average egg production per hen Average price per dozen eggs received during past year: At the present time, birds not in laying flock consist of the following (State number, also size or age of each group or kind): On birds sold for meat, most recent sales of each kind have been at following prices per pound: The average price per pound of each kind during past year was My flock has the following diseases (check): Coccidiosis Bacillary White Diarrhea Blackhead Other (describe) During the past year, the total number of deaths of birds from disease, rodents, etc. has been as follows: chicks and other young birds FRUIT AND BERRY Kind of Fruit or Berry (List each kind separately) INFORMATION Trees, Vines, Shrubs of Non-bearing A g e Trees, Vines, Shrubs of Bearing A g e Number of Trees, etc. older birds Number of Acres Number of Trees, etc. Number of Acres •Amount of Yearly Production Actual Production Last Year Actual or Expected Production This Season * Use appropriate units, such as pounds, quarts, bushels, or tons. DISPOSAL OF FRUIT PRODUCTION: (State manner in which last year's fruit was disposed of, to whom, and at what prices. Describe what arrangements have been made in regard to disposal of this season's fruit crops, and prices expected.) I, the undersigned, hereby certify that the foregoing figures, information and statements, written and printed, have been carefully read by me before signing and are true to the best of my knowledge and belief. Signed this day of 19 Signature: Signature: o Federal Reserve Bank of New York Form C R 116.1 FARM REAL ESTATE SCHEDULE New York State Bankers Association Farm Credit File Form No. 11 SUBMITTED BY TO BANK OF As a supplement to the financial statement of the undersigned showing condition as of LOCATION: County of This farm is situated in Town of State of , 19 , _Road, , on . miles from nearest village or Kind of road: city, which is Description of electricity supply: Description of water supply: USE OF FARM A N D M A N A G E M E N T : This farm is principally used for the following purposes: The farm is under the direct control and management of , who bears the following relationship to the owner: S « C w o < H OWNER: The legal and equitable title to the real estate described in this schedule is solely in the name(s) of -This tenant has occupied the farm T E N A N T : Name of tenant: since , 19 Kind of lease: (State whether written or verbal) The yearly rental, including share arrangements, etc., consists of the following: P 5 O fc Q H P 5 c OH H « OH Date lease expires: , 19 DESCRIPTION OF L A N D : Land class: Total number of acres: 19. The rental account is settled up to Soil types: , divided as follows: (Use spaces below) acres CROPLAND, used this year in the following manner: (State number of acres of each crop, using spaces below) H M P P O w -acres FRUIT TREES (State number and age of each kind) C O 9 P Q H W O w H H < J -acres GRAPES, etc. (Describe) -acres PERMANENT PASTURE, which provides sufficient forage for the following number of livestock:. -acres TIMBERLANDS, covered by trees suitable for lumber, as follows: Kind of Trees No. of Acres P S A g e of Trees No. of Board F t Fire Insurance -acres WOODLANDS, covered by trees suitable for pulpwood, firewood, etc., as follows: No. of Acres A g e of Growth Kind of Trees Fire Insurance Cords Standing W $ < acres POULTRY and FARM YARDS, ROADS, etc. acres ROUGH or UNCULTIVATED LAND, CUT-OVER WOODLAND, BRUSH, SWAMP, etc. DESCRIPTION OF BUILDINGS: List Below Each Bldg. There are situated on the farm the buildings described below: Size, or No. of Rooms Kind of Construction Age Operator's House Tenant House Replacement Value Present Condition $ Main Barn Other Barn Silo UNUSUAL N A T U R A L HAZARDS: The farm is not subject to floods, erosion, etc., except as follows: CR 116.1 2 M 10-45 (Continued on other side) Fire Insurance $ • o (Continued from other side) ACQUISITION AND VALUATION: The following information relates only to the land and buildings, and does not include machinery, implements, livestock or other personal property, unless specially stated. The present owner acquired this farm in the following manner: (List separately parcels acquired at different times) Number of Acres General Description of Each Parcel Year in Which Acquired How Acquired "Purchase", " G i f t " , "Inheritance", " T r a d e " , etc. Full Purchase Price Amount Still Owing on Farm $ $ Under the present ownership, improvements to the land and buildings have been made costing $ , of the following nature: (Describe briefly the improvements, and when made) In the opinion of the undersigned, the land and buildings could be sold now for $ tax purposes, in the last tax year, 19 , was $ State, County and Town Taxes $ The assessed value for , and the amount of taxes that year was as follows: , School Tax $ , other real estate taxes $ . MORTGAGES, UNPAID TAXES AND OTHER LIENS: Mortgages outstanding against this real estate: (Fill in the table below) Present Amount of Mortgage First Mortgage Second Mortgage Third Mortgage Terms of Payment Amount of Interest Due and Unpaid Rate of Interest Mortgage Held by (Name and Address) % $ $ $ % $ % $ % s $ $ Unpaid Taxes and Assessments on this real estate consist of the following: (Fill in the table below) Due for tax year o f : State, County and Town Taxes School Tax Other Real Estate Taxes and Assessments 19 19 19 Total for All Years 19 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ No Tax Lien Certificates against this real estate have been sold by the tax authorities and are now outstanding, except as follows: Other Liens: There are no liens against this real estate other than those described herein above, except as follows: OTHER DEBTS OR CLAIMS AGAINST REAL ESTATE: There is owing on land contract or otherwise, not secured by mortgage, part of the purchase price of this farm to extent of $ , which according to agreement is to be paid in the following manner: (State time and amount of payments, and to whom payable) FORECLOSURE ACTIONS: None have been instituted against this real estate, and to the best knowledge of the undersigned none are contemplated, except as follows: I, the undersigned, hereby certify that the foregoing figures, information and statements, written and printed, have been carefully read by me before signing and are true to the best of my knowledge and belief. Signed this day of , 19 . Signature: Signature: FEDERAL RESERVE BANK OF NEW YORK F o r m C R 162-15M-10-45 SCHEDULE OF ADVANCES A N D REPAYMENT Name Date Advances d ew York State Bankers Association Farm Credit File Form No. 5 AGREEMENTS Address Line To Date Purpose and Agreement •DERAL RESERVE BANK OF NEW YORK >rm C R . O 161-15M-10-45 0 ORIGINAL HISTORY CREDIT SHEET DEPARTMENT N A M E A D D R E S 9 _ B E MAKER: FARM B R I E F . S T A T E E S S E N T I A L S (Standing in Community, attitude toward debts, ability, health of family and attitude toward farming, etc.) O N L Y experience, business judgment, family labor available, -Acres of pasture and woods. Total acres. -Acres of tillage-Present Value $ . (Location as to Market and Farming area, general appearance and upkeep of buildings, fences, etc., land class, productivity and condition of soil, drainage, ease of operation, adequacy of pasture, timber and fuel.) EQUIPMENT (Adequacy and Condition. INSURANCE Adequacy of fire, auto, hail, and life. Probable necessary additions or replacements) CREDIT SOURCES CHECKED OMISSIONS OF LIABILITIES O R ASSETS O N CREDIT STATEMENT New York State Bankers Association Farm Credit File Form N o . 6 FEDERAL RESERVE BANK OF NEW YORK Form CR 160-15M-10-45 / F a SUPPLEMENTAL CREDIT HISTORY U S E T O R E C O R D SHEET L m F i I e Form N o . 7 DEPARTMENT N A M E F O R New York State Bankers Association € A D D R E S S - VISITS T O T H E F A R M , E X A M I N E R ' S C O M M E N T S , P E R S O N A L I N T E R V I E W S , ETC. Federal Reserve Bank of New York Form CR. 159-15M-10-45 N e w Y o r k State Bankers Association Farm Credit File ( ^ Form N o . 8 CERTIFICATE OF SEARCH Date Town of County of I certify that I have searched the records for a period of date and find the following unsatisfied liens against: Name Kind of Lien years from the above Address. In Favor of Search made by Search completed—Time Amount Description of Property Covered Date of Lien Date of Filing Town Clerk of. A. M. P. M 19 CONTINUED SEARCH This is to certify that since the above search was made the following personal property liens or incumbrances have been filed or recorded: Kind of Lien In Favor of Search made by Search completed—Time Amount A. M. P. M._ Description of Property Covered Town Clerk of. .19 Date of Lien Date of Filing o c C o p y to b e returned to the bank Federal Reserve Bank of New Y o r k F o r m CR 158 15M 10-45 ^ N e w Y o r k State Bankers Association F a r m Cred;, File Form No. O R D E R ON PROCEEDS OF 9 PRODUCE Dated at_ 19. Gentlemen: Please pay to the order of the. of , New York, the sum of $ * [or per cent of the amount due m e ] per month, f r o m the proceeds of_ delivered by the undersigned to you at your plant at_ and charge any payment so made against the account of the undersigned. T h e first of such payments to b e made on or about , 19 , and such monthly payments to continue until further notice b y the It is expressly understood that, by accepting the foregoing order, the said. shall incur no liability for failure to make deductions and payments as herein mentioned, and that the arrangement on its part is voluntary and without any consideration. V e r y truly yours, Farmer's Name Witness: Farmer's Address_ DEALER'S ACKNOWLEDGMENT W e acknowledge receipt of the foregoing order and accept the same but are not liable for failure to make the deduction requested. ( Date) Dealer By *Use whichever phrase is applicable. 19. Federal Reserve Bank of New York Form CR 158 15M 10-45 Dealer's copy ORDER ON PROCEEDS N e w Y o r k State Bankers Association Farm Credit File ' Form N o . 9 OF PRODUCE Dated at_ 19. Gentlemen: Please pay to the order of the of , New York, the sum of $ * [or per cent of the amount due m e ] per month, from the proceeds of delivered by the undersigned to you at your plant at and charge any payment so made against the account of the undersigned. The first of such payments to be made on or about , 19 , and such monthly payments to continue until further notice b y the It is expressly understood that, by accepting the foregoing order, the said. shall incur no liability for failure to make deductions and payments as herein mentioned, and that the arrangement on its part is voluntary and without any consideration. Very truly yours, Farmer's Name Witness: Farmer's Address. DEALER'S ACKNOWLEDGMENT W e acknowledge receipt of the foregoing order and accept the same but are not liable for failure to make the deduction requested. (Date) 19. Dealer _— By * U s e w h i c h e v e r p h r a s e is a p p l i c a b l e . , © FIRST NATIONAL BANK OF HILLSDALE HILLSDALE, N E W YORK January 3 , 1944 Mr. John Doe H i l l s d a l e , N. Y RFD # 3 Dear Mr. Doe: The annual r e v i s i o n o f our Credit F i l e s i s being made at time. this Through the i n f o r m a t i o n you f u r n i s h us from y e a r t o year you enable us t o more f u l l y serve you.Your f i n a n c i a l statement a l s o a i d s us i n f u l f i l l i n g a requirement o f the Bank Superv i s o r y A u t h o r i t i e s that we have on f i l e a c c u r a t e f i n a n c i a l i n f o r m a t i o n from borrowers a v a i l a b l e at a l l t i m e s . We s h a l l , t h e r e f o r e , a p p r e c i a t e i t i f you w i l l complete the e n c l o s e d Federal Reserve statement form as of your l a s t i n v e n t o r y d a t e , and f i l e i t with us promptly. Two c o p i e s o f the statement form are e n c l o s e d so that you may r e t a i n one f o r your own r e c o r d . Please complete a l l schedules and f i l l i n a l l blanks. Thanking you, we are Very t r u l y y o u r s , President ABC :D Enclosures 3 P . S . This l e t t e r i s going t o our r e g u l a r bank customers. In case you have no loans with us now we are s t i l l r e q u e s t i n g your new statement to keep your f i l e i n f o r m a t i o n a c t i v e f o r your f u t u r e u s e . o FIRST o NATIONAL BANK OF HILLSDALE HILLSDALE, N E W YORK A p r i l 5 , 1944 Mr. John Doe H i l l s d a l e , N. Y. RFD # 3 Dear Mr. Doe: On January 3, 1944, we wrote you asking that you complete and r e t u r n t o us a f i n a n c i a l statement as o f the c l o s e o f b u s i n e s s , December 31, 1943. As we p o i n t e d out i n our l e t t e r , a new statement from you w i l l enable us t o b e t t e r serve you during the y e a r , and i n a d d i t i o n i t w i l l f u l f i l l a requirement o f the Bank Superv i s o r y A u t h o r i t i e s that we have on hand up t o date i n f o r mation. We are anxious t o complete our f i l e s as soon as p o s s i b l e and s h a l l a p p r e c i a t e your f i l i n g your statement at an e a r l y d a t e . I f we can be o f any s e r v i c e t o you i n a s s i s t i n g you t o make out your statement we s h a l l be very glad t o do s o . Thanking you f o r g i v i n g t h i s matter your prompt a t t e n t i o n , we are Very t r u l y y o u r s , President ABC :D Procedure Suggested by the Farm Credit File Subcommittee for Setting Up Farm Credit Files Preliminary Steps 1. Place a marker on or set out the liability ledger sheet or card for all lines of credit to farrru $500 or more. 2. Prepare tabs showing the name and address of each borrower of $500 or more and affix th< credit folders. 3. Transfer the figures from the current year's financial statement and the statements of the prec two years to a comparison statement, N Y S B A farm credit file form number 2. Place the fin statements which the bank has on hand and the comparison statement in the file. 4. Show on the schedule of advances and repayments, N Y S B A farm credit file form number the extent the information is available, the present amount of each loan making up the far total liability, the date and purpose for which the money was borrowed, from what income the fj plans to pay it back, and the amounts of the payments to be made. 5. Place in the file copies of milk check and other assignments, N Y S B A farm credit file form ber 9, as well as similar assignment forms. Also place in the file correspondence which the has had with the farmer. 6. If the loan is secured by a chattel mortgage, place a copy of the chattel mortgage in the file. After the preliminary steps have been accomplished, additional steps should be completed as sc circumstances permit. Six to eight months might be allowed for completion of the following addi; steps: Additional Steps 7. Prepare an original history sheet, N Y S B A farm credit file form number 6. 8. Start a supplemental history sheet, N Y S B A farm credit file form number 7. On this sheet w recorded recent visits to the farm, discussions with the farmer in the bank, examiners' comn loan committee comments, and the like. 9. When an appraisal is made of the farmer's livestock, place a livestock appraisal sheet, N Y S B A credit file form number 3, in the file. 10. Make a search of the town clerk's records and show on a certificate of search, N Y S B A farm c file form number 8, any chattel mortgages, conditional sales contracts, judgments, or other ac filed against the farmer. 11. Place in the file an inventory of the farmer's machinery and equipment on N Y S B A farm credi form number 4. In order to assure completion of the file within a reasonable time, it is suggested that three or : files be completed each week. Recognizing what is everyone's business is no one's responsibility, it is ommended that one person be made responsible for the completion of the required number of files week. • When the file is completed, the information should be kept up to date. This should be accompli through a systematized procedure. One convenient tool for regular use "is a credit memorandum pad which officers and staff members jot down information for the file as it comes to their attention. I