(EXTRACT FROM)

[PUBLIC LAW 132-80TH CONGRESS]

[CHAPTER 166-18T SESSION]

[S. J. Res. 135]

JOINT RESOLUTION

To extend the succession, lending powers, and the functions of the Reconstruction Finance Corporation.

SEC. 206. Section 201 (e) of the Emergency Relief and Construction Act of 1932, approved July 21, 1932 (47 Stat. 709), as amended, and section 84 of the Farm Credit Act of 1933, approved June 16, 1933 (48 Stat. 257), as amended, are hereby further amended by striking out the name "Reconstruction Finance Corporation" wherever it appears in such sections and substituting therefor the name "Farm Credit Administration".

The following Acts and portions of Acts are hereby repealed:

(a) Sections 1, 201 (except subsection (e) thereof), 202, 203, 204, 205, 206, 207, 208, 209, and 211 of the Emergency Relief and Construction Act of 1932, approved July 21, 1932 (47 Stat. 709), as amended;

(h) So much of section 32 of the Emergency Farm Mortgage Act of 1932 (48 Stat. 41), as amended, as authorizes or directs the Reconstruction Finance Corporation to make funds available to the Land Bank Commissioner;

(s) So much of section 32 (b) of the Farm Credit Act of 1937, approved August 19, 1937 (50 Stat. 703), as relates to the Reconstruction Finance Corporation and so much of section 33 (b) of the said Act as relates to the payment of the expenses of corporations formed by the consolidation of two or more regional agricultural credit corporations;

Approved June 30, 1947.

(260)

(EXTRACT FROM)

[PUBLIC LAW 268-80TH CONGRESS]

[CHAPTER 358-1ST SESSION]

[H. R. 3756]

AN ACT

Making appropriations for Government corporations and independent executive agencies for the fiscal year ending June 30, 1948, and for other purposes.

SEC. 307. Section 104 of the Government Corporation Control Act (Public Law 248, Seventy-ninth Congress) is hereby amended to read as follows:

"SEC. 104. The Budget programs transmitted by the President to the Congress shall be considered and legislation shall be enacted making necessary appropriations, as may be authorized by law, making available for expenditure for operating and administrative expenses such corporate funds or other financial resources or limiting the use thereof as the Congress may determine and providing for repayment of capital funds and the payment of dividends. The provisions of this section shall not be construed as preventing Government corporations from carrying out and financing their activities as authorized by existing law, nor as affecting the provisions of section 26 of the Tennessee Valley Authority Act, as amended. The provisions of this section shall not be construed as affecting the existing authority of any Government corporation to make contracts or other commitments without reference to fiscal year limitations."

Approved July 30, 1947.

(261)

[PUBLIC LAW 720-80TH CONGRESS]

[CHAPTER 551-2D SESSION]

[H. R. 6114]

AN ACT

To amend title I of the Bankhead-Jones Farm Tenant Act, as amended, so as to increase the interest rate on title I loans, to provide for the redemption of nondelinquent insured mortgages, to authorize advances for the preservation and protection of the insured loan security, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sections of title I of the Bankhead-Jones Farm Tenant Act, as amended, are hereby amended as follows:

SEC. 1. Amend subsection (b) (2) of section 3 to read:

"(2) provide for the payment of interest on the unpaid balance of the loan at the rate of 4 per centum per annum ;". SEC. 2. Amend subsection (c) (4) of section 12 to read:

"(4) the mortgage instruments shall comply with section 3 (b), except that the base rate of interest shall be 3 per centum per annum ;".

SEC. 3. Amend subsection (e) (1) of section 12 to read:

"The Secretary shall collect from the mortgagor for mortgage insurance an annual charge at the rate of 1 per centum of the outstanding principal obligation of the mortgage; the initial charge shall be collected simultaneously with the insurance of the mortgage and shall cover the period from the date of loan closing to the date of the first installment payable on the loan; the next and each succeeding charge shall be computed on the outstanding principal obligation remaining unpaid after the due date of each installment payable on the loan, and shall be payable on or before the next succeeding due date of an installment of principal and interest. If the principal obligation of the mortgage is paid in full in less than five years after the time when the mortgage was entered into, the Secretary may require payment by the mortgagor of the entire annual charge computed for the year then current, and an additional charge equal to the annual charge for such year. The Secretary may modify existing contracts so as to require future payments thereunder in accordance with the provisions of this section."

SEC. 4. Amend subsection (f) of section 12 by striking out subsections (2) and (3), and inserting in lieu thereof the following new subsections (2), (3), and (4).

"(2) If the mortgagor has failed to pay to the Secretary the full amount of any installment on or before the due date thereof, the Secretary shall pay promptly the unpaid amount of such installment of principal and interest to the mortgagee, less the amount of any previous prepayments except payments from proceeds from the voluntary or involuntary sale of any part of the mortgaged property or from royalties from leases under which the value of the security is depreciated. "(3) If the mortgagor fails to pay any amounts due for taxes, special

assessments, water rates, and other amounts which may become liens prior to the mortgage, and any amounts due for property insurance premiums, such amounts may be paid by the Secretary, either before or after assignment of the insured mortgage to the Secretary, for the account of the mortgagor as provided in paragraph (4) below.

"(4) Payments by the Secretary under paragraphs (2) and (3) shall be advanced out of the fund for the account of the mortgagor. Such advances shall be repaid to the fund out of the first available collections received from the mortgagor. Such advances shall bear interest at the rate fixed in the insured mortgage payable out of any subsequent collections, and, until repaid, the advance and interest thereon shall be added to subsequent installments."

SEC. 5. Amend section 12 by adding at the end thereof the following new subsection (j).

(j) The Secretary is authorized to enter into agreements from time to time with the holder of a mortgage heretofore or hereafter insured under this title that any holder thereof, at the holder's option, shall be entitled, upon assignment of such mortgage to the Secretary within one year after the expiration of a period fixed by such agreement, to have the mortgage purchased by the Secretary even though the mortgage is not then in default, provided the initial fixed period shall be not less than five years from the date of the insured mortgage. Such assignment shall be accomplished in the same manner and the value of such mortgage shall be determined on the same basis as provided by section 13 for mortgages in default. The Secretary may purchase any such mortgage with moneys in the fund and may sell it at its value likewise determined in accordance with section 13 at the time he sells it, and reinsure it, if necessary, or he may retain it for the account of the fund until the indebtedness is discharged through refinancing by the mortgagor, by foreclosure, or otherwise. The value of all such mortgages retained for the fund as herein provided shall not be included in computing the aggregate amount of mortgage obligations that may be insured in any one fiscal year, as provided in section 12 (b). If there should not be sufficient cash in the fund to enable the Secretary to make payments to purchase mortgages as provided in this subsection, in order to obtain funds to make such payments notes may be issued and purchased in the same manner as provided in section 13."

SEC. 6. Amend subsection (a) of section 14 by adding at the end thereof the following sentence: "Expenses and fees incident to foreclosure may be advanced out of the fund for the account of the mortgagor."

SEC. 7. Amend subsection (b) of section 14 to read:

"(b) Amounts realized under section 51 on account of property which was subject to an insured mortgage shall be deposited in the fund. Amounts payable by the Secretary under section 50 with respect to such property, and any necessary costs and expenditures for the operation, preservation, and protection of such property, shall be paid out of the fund."

Approved June 19, 1948.

[PUBLIC LAW 38-81ST CONGRESS]

[CHAPTER 49-1ST SESSION]

[H. R. 2101]

AN ACT

To abolish the Regional Agricultural Credit Corporation of Washington, District of Columbia, and transfer its functions to the Secretary of Agriculture, to authorize the Secretary of Agriculture to make disaster loans, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) there are hereby transferred to the Secretary of Agriculture (hereinafter referred to as the Secretary) all the functions of the Regional Agricultural Credit Corporation of Washington, District of Columbia, including but not limited to functions with respect to

(1) loans to bona fide fur farmers as provided for in the last proviso in the paragraph headed "Regional Agricultural Credit Corporation of Washington, District of Columbia", in title II of the Government Corporations Appropriation Act, 1949 (Public Law 860, Eightieth Congress);

(2) loans under authorization by the Secretary for the Regional Agricultural Credit Corporation of Washington, District of Columbia, to reenter an area or region where a production disaster has occurred, as provided for in the proviso in section 2 of the Department of Agriculture Appropriation Act, 1949 (Public Law 712, Eightieth Congress); and

(3) the liquidation of all other loans heretofore made by the Regional Agricultural Credit Corporation of Washington, District of Columbia, and of all assets, contracts, property, claims, rights, and liabilities relating thereto.

(b) There are hereby transferred to the Secretary the functions of the Farm Credit Administration and the Governor thereof with respect to the Regional Agricultural Credit Corporation of Washington, District of Columbia.

(c) The Regional Agricultural Credit Corporation of Washington, District of Columbia, is hereby dissolved. The Secretary of the Treasury shall cancel the outstanding certificates of stock of the Corporation.

(d) All assets, funds, contracts, property, claims, and rights, all records, and all liabilities of the Corporation are hereby transferred to the Secretary. The revolving fund created by section 84 of the Farm Credit Act of 1933, as amended (12 U. S. C. 1148a), shall be available to the Secretary for the performance of the functions specified in paragraphs (a) (1), (2), and (3) of the section, including administrative expenses in connection therewith: Provided, That for the fiscal year 1949 the limitations on the administrative expenses of the Corporation with respect to the said functions shall be applicable to the Secretary.