Page:United States Statutes at Large Volume 46 Part 1.djvu/58

 14 SEVENTY-FIRST CONGRESS. SEss. I. Cs. 24. 1929 . Revolving fund. agricultural commodities ; and transportation conditions and their effect u pon the marketin g of agri cultural commodi ties. REVOLVING FU ND Sum authorized or. tobe appropriated for. SEC. 6. There is hereby authorized to be appropriated the sum of Post, pp . 28, 93, 1033. 500,000,000 which shall be made available by the Congress as soon as practicable after the approval of this Act and shall constitute a revolving fund to be administered by the board as provided in this Act. Loans to cooperative associations. LOANS TO COOPERATIVE ASSOCIATIONS Authorized on appli- SEC. 7. (a) Upon application by any cooperative association the cation therefrom. board is authorized to make loans to it from the revolving fund to assist in- To assist in merchan- (1) the effective merchandising of agricultural commodities and dis ing commodi ties. food products thereof ; For physical market- (2) the construction or acquisition by purchase or lease of physical ing facilities. marketing facilities for preparing, handling, storing, processing, or merchandising agricultural commodities or their food products ; Clearing house also ciations 3) the f ormation of clear ing hous e associ ations ; . Educating producers 4) extending membership of the cooperative association applying in advantages of co- for the loan b educating the producers of the commodity handled oper ative market ing of y g y thei r commoditie s. by the association in the advantages of cooperative marketing of that commodity ; and market price of com- Ad market share of (5) e nabling the coop erative associati on apply ing for the loan to modities delivered. advance to its members a greater share of the market price of the c ommo dity deliv ered to t he as soci ation than is pract icabl e un der o ther cred it fa cilit ies. No loan, unless ap- (b) No loan shall be made to any cooperative association unless, in plying association has organization, ssafety the reo f. to the judgment of the board, the loan is in furtherance of the policy declared in section 1 and the cooperative association applying for the loan has an organization and management, and business policies, of such character as to insure the reasonable safety of the loan and the furtherance of such policy. for physical facilities. Limitations on loans (c) Loans for the construction or acquisition by purchase or lease Not more than 80 per of physical facilities shall be subject to the following limitations cent of their value. (1) No such loan for the construction or purchase of such facilities shall be made in an amount in excess of 80 per centum of the value of the facilities to be constructed or purchased. renteasonable price or (2) N o loan f or the p urchase or lease of such faciliti es shall be made unless the board finds that the purchase price or rent to be paid is reasonable. If existing facilities (3) No loan for the construction, purchase, or lease of such facili- not availab le for s erv- ices. ties shall be made unless the board finds that there are not available suitabl e existing facilities that will fur nish their services to the co- operative association at reasonable rates ; and in addition to the preceding limitation, no loan for the construction of facilities shall be made unless the board finds that suitable existing facilities are not available for purchase or lease at a reasonable price or rent. Re paym ent upo n (d) Loans for the construction or purchase of physical facilities, amortization plan. together with interest on the loans, shall be repaid upon an amorti- zation plan over a period not in excess of twenty years. Mis cell aneo us l oan MISCELLANEOUS LOAN PROVISIONS provisions. Interest rate on loans and advanc es. SEC. 8. (a) L oans to any coop erative a ssociati on or st abilizat ion . corporation and advances for insurance purposes shall bear interest at a rate of interest per annum equal to the lowest rate of yield (to the nearest one-eighth of 1 per centum) of any Government obli-

�