The Federal Land Bank Association of North Alabama is a cooperative, which means that its borrowers also own its stock. To receive a loan or qualify for financially related services, you must invest in capital stock or participation certificates of the association. This stock investment entitles you to certain benefits and privileges but is not without risk.

Answers to the most common questions about stock investments are included below. If you have additional questions, please contact us.

• What types of loans does the FLBA of North Alabama make?
  
  

  We make loans to purchase land, refinance existing mortgages and other debts, construct and repair homes and other buildings, make property improvements, construct or improve agribusiness facilities, purchase machinery and equipment, purchase livestock, and for other needs where term financing is appropriate.

• Does the FLBA of North Alabama make home loans?

  Yes, we make loans for the purchase, construction and improvement of homes located in rural areas. We also finance rural homesites upon which a home will be constructed in the future. The FLBA of North Alabama also offers loans through the secondary mortgage market (Fannie Mae loans).

• Who can borrow from the FLBA of North Alabama?

  Anyone owning or purchasing rural property or who is engaged in farming, timber or other ag-related businesses may be eligible. This includes individuals, partnerships and corporations. Additionally, loans may be obtained for financing part-time farms, rural residences or recreational property. Loan approval and terms are subject to the creditworthiness of the applicant(s) and the collateral offered.

• How will a Land Bank loan benefit me?

  Borrowers become part-owners in the association through stock purchases determined by the amount of the loan. Borrowers have the right to vote on co-op decisions, including the election of its board of directors. Because the FLBA of North Alabama is a cooperative, profits often are returned to stockholders through patronage or dividends.

• How much can I borrow?

  Whether you are a young, beginning or small farmer or a large corporation, the FLBA of North Alabama can meet your financing needs. The Land Bank has alliances with other associations to make large, complex agribusiness loans. When assessing a loan application, loan officers consider these primary factors: the individual, financial responsibility, repayment capacity, loan purpose and security offered.

• What determines the time or method of repayment?

  Primarily, the nature of the loan, its purpose and the financial capacity of the customer determine repayment options. Repayments are set up to coincide with borrower cash flow. They also may be paid in installments from farm operations or non-agricultural sources.

• What form of collateral is required?

  All real estate loans must be secured by a first mortgage, generally on the farm, timberland, agribusiness or rural home that is financed by the loan.

• Does the FLBA of North Alabama accept deposits?

  We offer an interest-bearing future-payment fund/funds-held account for our borrowers. Interest earned is applied to the interest due on the next loan installment. Borrowers can use the money in the funds-held account to pay loan installments or withdraw it for other purposes.

• Where does the FLBA of North Alabama obtain funds to make loans?

  Our association is part of the national Farm Credit System and is affiliated with the Farm Credit Bank of Texas, located in Austin, Texas. The Farm Credit Bank of Texas provides funding for loans by selling bonds to investors in the nation's money markets.