Page:United States Statutes at Large Volume 47 Part 1.djvu/1572

 1548 Purposes of loans. Powers of Fed era l land banks. Vol 39 p .372 . U.S. d.,p. 300. An te, p .14, amended. Real esta te holdings. Limitation. Loans on first mort- gag es. Vol.39,p.372. U.S. C.,p. 305. Unpaid balances. Pay me nt may be postponed. Terms and condi- tions. Simple interest on extended payments stipulated. Unpa id ta xes, etc. Reamortization of loans. 72d CON GRE SS SESS. II. CH. 270. MARCH 4, 1933 . " Fourth . Such loans may be made for the following purposes and for no othe r "(a) To provide for the purchase of land for agricultural uses. "(b) To provi de for t he purch ase of e quipment, fertili zers, an d livestock necessary for the proper and reasonable operation of the mortgaged farm ; the term `equipment' to be defined by the Federal Farm Loan Board . "(c) To provide buildings and for the improvement of farm lands ; the term `improvement' to be defined by the Federal Fa rm Lo an Board. "(d) To liquidate indebtedness of the owner of the land mort- g'aged incurred for agricultural purposes, or incurred prior to January 1, 1933 . "(e) To provide the owner of the land mortgaged with funds for general agricultural uses ." SEc. 3. Subparagraph- (b) of paragraph " Fourth " of section 13 of the Federal Farm Loan Act, as amended (U. S. C., title 12, ch. 7, sec . 781), is amended by adding at the end thereof a new sentence to read as follows : "Every such bank may carry real estate as an asset, for a period of not exceeding five years, at its normal value but not to exceed the amount of the bank's investment therein at the time of acquirement of such real estate ." SEC. 4. Section 13 of the Federal Farm Loan Act, as amended (U. S. C., title 12, chap. 7, sec. 771), is amended by adding at the end thereof the following new paragraphs : "Eleventh. At any time within five years after the date this para- graph takes effect, any borrower who has obtained a loan from a Federal land bank may on application to such Federal land bank and upon approva l of suc h applic ation by the dire ctors of the ban k postpone the payment of any unpai d ins tallm ent o r inst allme nts in the manner herein provided in this section. Such postponed pay- ment shall be made by paying at the time each succeeding annual installment is due, one-tenth of the amount of the postponed pay- ment, and, in the case of semiannual installments, by paying at the time each succeeding semiannual installment is due, one-twentieth of the postponed payment, until the amount of such postponed pay- ment has been paid. In any case in which the number of remaining installments due on the mortgage is less than ten, in the case of annual installments, or less than twenty, in the case of semiannual installments, the amount of the postponed payment "shall be distrib- ut ed proportionately over the remaining number of installment payme nts . " Twelfth. For the period of five years after the date this para- graph takes effect, every borrower shall pay simple interest on extended payments at the same rate of interest as stipulated in the mortgage securing the loan as to payments not in defaul t and by express covenant in his mortgage -deed shall undertake to pay when due all taxes, liens, judgments, or assessments which may be law- fully assessed against the land mortgaged. Taxes, liens, judgments, or assessments not paid when due, and paid by the mortgagee, shall become a part of the mortgage debt and shall bear interest at the rate provided in the mortgage. "Thirteenth . When in the judgment of the directors conditions justify it, and with the approval of the Federal Farm Loan Board, to reamortize, in whole or in part, the aggregate amount remaining unpaid under the terms of any mortgage, and to accept payment of such aggregate amount on an amortization plan by means of a fixed