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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
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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 .
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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.
Digitized forD FRASER
ATE
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.
ADDRESS
FARM
IN T O W N
FARM
PURCHASED
OF
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
NAME
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)
DAY
Omit Cents
OF
19
LIABILITIES ( W H A T I OWE)
$
Farm Lands and Buildings
a
o
hi
a
a
<
ON T H E
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
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
Omit Cents
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.
ou
Ck
ex
<
fi
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
LIABILITIES ( W H A T I O W E ) '
Mortgage Loans on Other Real Estate
Trucks, Tractors and Automobiles
Balance Owing on Land Contract
Other Farm Machinery and Equipment
Notes Payable to Dealers and Merchants
Not covered by security
Notes Payable to Dealers and Merchants
Covered by security described below;
Pure Bred Cows
No.
Breed
Grade Cows
No.
Breed
Notes Payable to Banks
a
Grade Bulls
Notes Payable to Banks
02
Heifers and Yearlings
W
H
O
«
55
0
CO
1
No.
Breed
No. «
No.
Not covered by security
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
CQ
J
<
H
Omit Cents
$
Other Real Estate
Pure Bred Bulls
a
19.
Mortgage Loans on Farm
$
W
§
r
•B
— D A Y OF
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
CQ
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
I0-
$
$
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 statement, all persons at interest should sign.)
.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
Other machinery
P o t a t o planter
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
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
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
AND
A m o u n t Forwarded
H a y racks
D u m p rake
MAKE
DESCRIPTION
P o t a t o digger
Spring-tooth harrow
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
ADDRESS
TO
BANK OF
r
FORM #10
~TATEMENT
_ _»k)
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
H o w Used
Rent per Y e a r
Rent Paid Until
Prop'ty Rented Until
Rent per Y e a r
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:
P5
O
fc
Q
H
P5
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)
CO
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
PS
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
@FedFRASER