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Resettlement Administration to 301.50 Preferential handling of vet-
the Secretary of Agriculture.
erans' applications.

SUBPART-ORDERS ESTABLISHING AND DEFINING FUNCTIONS

AND DUTIES

Section 301.1 Functions and duties of the Farm Security Administration to be exercised and performed by the Administrator thereof. (a) To administer approved projects involving rural rehabilitation, relief in stricken agricultural areas, and resettlement of destitute or low-income families from rural and urban areas, including the establishment, maintenance, and operation, in such connection, of communities in rural and suburban areas.

(b) To initiate and administer a program of approved projects with respect to soil erosion, stream pollution, seacoast erosion, reforestation, forestation, flood control, and other useful projects.

(c) To make loans as authorized under the Emergency Relief Appropriation Act of 1935 (49 Stat. 115; 15 U.S.C., Sup., 728) to finance, in whole or in part, the purchase of farm lands and necessary equipment by farmers, farm tenants, croppers, or farm laborers.* [E.O. 7027, Apr. 30, 1935, as amended by E.O. 7200, Sept. 26, 1935]

*88 301.1 to 301.50, inclusive, issued under the authority contained in the Emergency Relief Appropriation Act in effect at the time of issuance, sec. 6, 49 Stat. 118, 49 Stat. 1609, sec. 2 (a), 50 Stat. 354; 15 U.S.C., Sup., 728. More specific authority and statutory provisions interpreted or applied are cited in parentheses at the end of the sections affected.

The authority delegated to the President by these statutes has been redelegated by him in the following Executive orders, among others:

E.O. 7027, Apr. 30, 1935, establishing the Resettlement Administration and prescribing its functions and duties. (§§ 301.1, 301.2)

E.O. 7028, Apr. 30, 1935, transferring certain property, functions, funds, from Federal Emergency Relief Administration to the Resettlement Administration.

E.O. 7041, May 15, 1935, transferring certain property, functions, funds, from Secretary of Interior to the Resettlement Administration.

E.O. 7083, June 24, 1935, prescribing rules and regulations relating to methods of prosecuting projects under the Emergency Relief Appropriation Act of 1935. E.O. 7143, Aug. 19, 1935, prescribing rules and regulations governing the making of loans by the Resettlement Administration under the Emergency Relief Appropriation Act of 1935. (§ 301.3)

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E.O. 7200, Sept. 26, 1935, amending functions and duties set forth in E.O. 7027. (§ 301.1)

E.O. 7347, Apr. 15, 1936 (1 F.R. 207), amending E.O. 7083.

E.O. 7396, June 22, 1936 (1 F.R. 651), making certain orders, rules and regulations under the 1935 Act applicable to Emergency Relief Appropriation Act of 1936. E.O. 7530, Dec. 31, 1936 (2 F.R. 7), transferring property, functions, funds, from Resettlement Administration to Secretary of Agriculture. (§ 301.4) E.O. 7557, Feb. 19, 1937 (2 F.R. 343), amending E.O. 7530. (§ 301.4)

E.O. 7649, June 29, 1937 (2 F.R. 1136), making certain orders, rules and regulations under 1935 and 1936 Acts applicable to Emergency Relief Appropriation Act of 1937.

The Secretary of Agriculture has further delegated certain of his powers in the following memorandum among others:

Sec. Memo. 738, Sept. 30, 1937, delegating authority to the Administrator of the Farm Security Administration under the Bankhead-Jones Farm Tenant Act. ABBREVIATIONS: The following abbreviations are used in this chapter:

A.O.

Adm. Instr.
E.O.

Sec. Memo.

Administration order, Administrator.

Administration instruction, Administrator.
Executive order.

Secretary's memorandum, Secretary of Agriculture.

301.2 Authorizations given to the Administrator of the Farm Security Administration. (a) In the performance of the duties and functions given in § 301.1, the Administrator is authorized to employ the services and means mentioned in subdivision (a) of section 3 of the Emergency Relief Appropriation Act of 1935 (49 Stat. 117), to the extent therein provided, and, within the limitations prescribed by said section, to exercise the authority with respect to personnel conferred by subdivision (b) thereof.

(b) To the extent necessary to carry out the provisions of this section and § 301.1, the Administrator is authorized to acquire, by purchase or by the power of eminent domain, any real property or any interest therein and improve, develop, grant, sell, lease (with or without the privilege of purchasing), or otherwise dispose of any such property or interest therein.* [É.O. 7027, Apr. 30, 1935]

301.3 Loans by the Farm Security Administration under the Emergency Relief Appropriation Act of 1935. (a) Loans may be made by the Farm Security Administration (1) for the purpose of financing, in whole or in part, the purchase of farm lands and necessary equipment by farmers, farm tenants, croppers, or farm laborers, and (2) for such other purposes as may be necessary in the administration of approved projects involving rural rehabilitation or relief in stricken agricultural areas.

(b) Loans for the purposes mentioned in paragraph (a) (2) may be made by the Farm Security Administration either to individuals or to such bona fide agencies or cooperative associations as the Administrator shall approve: Provided, however, That such loans shall be made to such agencies or associations only upon condition (1) that they impose no inequitable restrictions upon membership or participation therein, and (2) that they be so conducted under the supervision of the Farm Security Administration as to protect adequately the interests of the members or participants therein.

(c) Interest shall be charged on all loans made by the Farm Security Administration at rates to be fixed by the Administrator,

*For statutory citation, see note to § 301.1.

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which rates shall not be greater than 5 percent or less than 3 percent per annum, and need not be uniform (1) throughout the United States or (2) on loans of different classes. Where circumstances so require, the Administrator may reduce the rate at which unaccrued interest shall be payable on outstanding loans, but in no case to a rate less than 3 percent per annum.

(d) All loans shall be for such a period, not to exceed 40 years, as the Administrator shall prescribe. The period for any loan or class of loans shall be fixed by the Administrator upon the basis of (1) the use to which the proceeds thereof are to be put, (2) the financial resources and earning capacity of the borrower, and (3) in the case of loans to finance the purchase of specific property, the probable rate of depreciation, the estimated life thereof, and the amount of the loan as compared with the total purchase price.

(e) Unless otherwise authorized by the President, all loans for a period of 2 years or more shall provide for repayment in equal annual instalments, which may include interest in the discretion of the Administrator, except that when the loan is for a period of 5 years or more, and in the opinion of the Administrator the financial condition of the borrower so justifies, there need be no requirement that any payment be made on the principal during the first 3 years after the loan is made.

(f) Upon default in the repayment of any loan or payment of interest, the Farm Security Administration may (1) enforce payment by realizing upon the security and by legal proceedings, (2) extend the time of payment where the circumstances so justify, or (3) refinance such loan upon terms and conditions not inconsistent with the provisions of this section.

(g) In the case of any person who has entered into a contract for a loan from any State rural rehabilitation corporation operating, in whole or in part, with funds directly or indirectly granted by the United States, and who is unable to receive the full amount of the loan from the corporation, the Farm Security Administration, upon receiving an assignment of such contract from the corporation, may complete such loan according to its terms, and enforce such contract to the extent of the interest of the Farm Security Administration therein.* [E.O. 7143, Aug. 19, 1935]

301.4 Transfer of the functions, funds, property, and so forth, of the Resettlement Administration to the Secretary of Agriculture. Effective January 1, 1937, all the powers, functions, and duties heretofore vested in the Resettlement Administration by Executive Order 7027, April 30, 1935 (as amended by Executive Order 7200, September 26, 1935), Executive Order 7028, April 30, 1935, and Executive Order 7041, May 15, 1935, are hereby transferred to the Secretary of Agriculture, to be exercised and performed by him; and all funds, personnel, property, records, and equipment of the Resettlement Administration are hereby transferred to the United States Department of Agriculture, to be under the supervision, control, and direction of the Secretary of Agriculture.* (Sec. 41 (1), 50 Stat. 529; 7 U.S.C., Sup., 1015 (i)) [E.O. 7530, Dec. 31, 1936, 2 F.R. 7, as amended by E.O. 7557, Feb. 19, 1937, 2 F.R. 343]

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*For statutory citation, see note to § 301.1.

The

301.5 Resettlement Administration changed to Farm Security Administration. Effective September 1, 1937, the Resettlement Administration is changed to Farm Security Administration. Administrator of the Resettlement Administration shall continue to perform the same functions and be subject to the same limitations as have heretofore been prescribed, but shall, pursuant to the foregoing change, be hereafter known as the Administrator of the Farm Security Administration.* [Sec. Memo. 732, Sept. 1, 1937, 2 F.R. 1800]

301.6 Additional functions. The Administrator of the Farm Security Administration shall perform such of the functions vested in the Secretary of Agriculture under Titles I and II, and related sections of Title IV, of the Bankhead-Jones Farm Tenant Act, as may from time to time be hereafter prescribed. (50 Stat. 522; 7 U.Š.C., Sup., 1000-1029) [Sec. Memo. 732, Sept. 1, 1937, 2 F.R. 1800]

SUBPART-CLAIMS OF DECEASED OR INCOMPETENT EMPLOYEES AND CREDITORS OF THE FARM SECURITY ADMINISTRATION

301.25 Presentation of claims for deceased employees or creditors. Amounts due from the Farm Security Administration, in excess of five hundred dollars ($500), will be paid only to the legally appointed executor or administrator of the estate of the decedent, or as may be ordered by the court. If an executor or administrator has not and will not be appointed, amounts due from the Farm Security Administration, not in excess of five hundred dollars ($500), may be paid to the person or persons who, under the laws of the domicile of the decedent, or an applicable Federal statute, would be entitled to receive the money if administration were had. [Par. 3a, A.O. 156, Mar. 31, 1936]

301.26 Presentation of claims for incompetent employees or creditors. In making claims for amounts due an employee or creditor who has been duly adjudged incompetent, the guardian or committee of the estate of such incompetent will submit a certificate showing the appointment and qualification as guardian or committee, whether bond, if required, has been given, and whether appointment is still in force and effect. [Par. 3b, A.O. 156, Mar. 31, 1936]

SUBPART-VETERANS' APPLICATIONS

301.50 Preferential handling of veterans' applications. Preferential consideration will be given applications of veterans of armed forces of the United States who have applied for benefits of the program of the Farm Security Administration. Applications coming to the Farm Security Administration from the Veterans Administration without approval will be referred to the appropriate public welfare agency authorized to determine need for public aid, with the request that they be given prompt consideration. [Pars. 2b, 3a IV, A.O. 102, rev. 1, Mar. 30, 1936, 1 F.R. 91]

*For statutory citation, see note to § 301.1.

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Sec.

PART 302-RESETTLEMENT
Sec.

302.1 Agreements respecting payments 302.6
in lieu of taxes.

302.2 Selection of families for reset. 302.7 tlement type projects; eligibil

ity.

302.3 Same; general selection criteria.

302.4 Same; minimizing costs.

Same; conditions for use of Con-
tract.

Same; major provisions of Farm
Purchase Contract.
SUBPART-Tenure agreements
and leases for resettlement type
projects.

302.5 Sale and lease of land to reset- 302.25 Limitations in use of Tenure tlement clients. Forms.

Section 302.1 Agreements respecting payments in lieu of taxes. It is the policy of the Farm Security Administration to enter into agreements for the making of payments in lieu of taxes upon the request of the State or political subdivision thereof or other local public taxing unit within whose territorial limits a resettlement type project or rural rehabilitation project for resettlement purposes is located, only when it is contemplated that the title to such project will remain in the United States either temporarily or indefinitely. (Sec. 2, 49 Stat. 2036; 40 U.S.C., Sup., 432) [Par. 2a, A.O. 213, Nov. 28, 1936]

*88 302.1 to 302.25, inclusive, issued under the authority contained in the Emergency Relief Appropriation Act in effect at the time of issuance, sec. 6, 49 Stat. 118, 49 Stat. 1609, sec. 2 (a), 50 Stat. 354; 15 U.S.C., Sup. 728. More specific authority and statutory provisions interpreted or applied are cited in parentheses at the end of the sections affected. The authority delegated to the President by these statutes has been redelegated by him in the Executive orders listed in note to § 301.1.

302.2 Selection of families for resettlement type projects; eligibility. The following groups of families are eligible for resettlement on rural community or infiltration projects:

Families required to be resettled in connection with land use type projects. If such families satisfy the criteria of selection set up for the particular project, they will be given preference.

Destitute and low-income farm families of the following types: Farm owners, farm tenants, croppers, farm laborers or persons who were recently in any of the foregoing classes; other persons with farming experience who are or were recently on relief rolls; other persons with farming experience who are or were recently registered as borrowers or receivers of public aid from a state rural rehabilitation corporation or from the Farm Security Administration; other persons with farming experience who are in default in payments to a Federal Land Bank and are in danger of foreclosure and eviction; other persons with farming experience who are in default to or have been denied credit by the Farm Credit Administration or any agency thereof; and other persons with farming experience, including ex-service men and young married men just entering upon the enterprise of farming, who are found to be similarly in need of public aid.

On the subsistence homesteads type projects the following groups of families are eligible for resettlement:

Low-income, self-supporting families from rural and urban areas desirous of relocating in satisfactory homes outside of or near industrial centers.

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