Page:United States Statutes at Large Volume 47 Part 1.djvu/31

 72d CONGRESS. SESS. I. CH. 8. JANUARY 22, 1932 . 7 or of the Unit ed States, includi ng loans secured by the as sets of a ny 9e or secured a cy bank that is closed, or in process' of liquidation to aid in the reor- banks. gani zation or liquidation of such banks upon application of the rece iver o r liqu idatin agent of su ch bank and any receiver of any national bank is hereby authorized 'to contract for such loans 'and Contracts for. to pledge any assets of the bank - for securing the same : Provided, Rioiion on total That not more than $200,000,000 shall. b e used for the relief of banks s m'o' unt to closed, et" that are closed or in 'the process of liquidation . All loans made under the foregoing provisions shall be fully and securit y required. adequately secured . The corporation, under such conditions,as it o Administration t cf p a shall prescribe, rescribe, may take over or provide for the a dministration and as. liq uidati on of any co llater al acc epted by it as security for such loans . Such loans may be made direct] y~ upon promissory' notes or by way of discount or rediscount: of obligations tendered for the purpose, or otherwise in such form and in such amount and at such interest or discount rates as the corporation may approve : Provided, Foreign security or That no loans or advances shall be made' upon foreign securities or acceptances as collat . foreign acceptances as collateral or for the purpose of assisting in the carrying or liquidation of such foreign securities and foreign accept- anc es. In no case shall the aggregate' amount of advances made advances gate a mount off under' this section to any one corporation and its subsidiary or affili- tion, etc ., limited. ated organizations exceed at any one time 5 per centum of (1) the post, p. 714. pl authorized capital stock' of the Reconstruction Finance Corporation us (2) the aggregate amount of bonds of the corporation authorized to be outstanding when the capital stock is fully subscribed. Each such loan may, be made for a period not exceeding three Period of loan. - years, ' and the corporation may from time to time extend the time of payment of any such loan, through renewal substitution of new aihm i ea reLewals obligations, or otherwise, but the time for such payment shall not be extended beyond five years from the date upon which such loan Restriction on loans was made originally. Except as provided in. section 5a hereof, to any enterprise not no loan or advancement shall be made by the' corporation for the he retofor e initi ated. purpose of initiating, setting on foot, or financing any enterprise not. initiated s et on foot, or under taken pri or to the adop tion of this Provisos. Act : Provided, That the foregoing limitation shall not applyy to Exceptions. lo ans made to agricu ltural or livestoc k' credi t corpora tions, or Fed- eral land banks, joint-stock land banks, or Federal intermediate credit banks, nor to loans made to banks for the purpose of financing agricultural operations. The corporation may make loans under lowla within a which thi s section at any t ime prior to the e xpiration of one y ear from the date of the enactment hereof ; and the President may from time a ntauthorixbd . Pre si. to time postpone such date of expiration for such additional period or periods as he may deem necessary not to exceed two years from the date of the enactment hereof. Within the foregoing limitations npi °am 1 o I il rwds of this section, the corporation' may also, upon the approval of the state commerce com. Interstate Commerce Commission~ make loans to aid in the tem- porary financing : of railroads anti railways engaged in interstate commerce, to railroads and railways in proc ess of construction, and too receivers of such railroads and railways, when in t he opin- ion of the board of directors of the corporation such railroads or railways are unable to obtain funds upon reasonable terms through banking channels or, from the general public and the corporation will be adequately secured : Provided, That no fee - or commission Payment of fee, etc„ shall be paid by any applicant for a loan under the-'provisions hereof for loan prohibited. in connection with any such application or any loan made or to be made hereunder, and the agreement to pay or payment of any such unlawful. to pay, fee or commission shall be unlawful. Any such railroad may obli- gate itself in such form as shall be prescribed and otherwise comply etc eby sloe pity, with the requirements of the Interstate Commerce Commission and