Page:United States Statutes at Large Volume 48 Part 1.djvu/1137

 73d CONGRESS. SESS. II. CH. 653. JUNE 19, 1934. 1111 drainage districts, irrigation districts, and similar distr icts," and inserting in lieu thereof " $125,000,000 to or for the benefit of drain- age districts, levee districts, levee and drainage districts, irrigation dis tric ts, and simi lar dist rict s, m utua l nonprofit companies and incorporated water users' associations " . (2) By striking from the second sentence thereof " distr ict or ° Borrower", to in- cludecompan y or as- political subdivision " and inserting in lieu thereof " district, political sociation . subd ivis ion, com pany, or ass ocia tion ". (3) By amending clause (4) thereof to read as follows : "( 4) the borrower shall agree, insofar as it 'may lawfully do mAgreementforrepay- so, that so long as any part of such loan shall remain unpaid the bor rower will in each year ap ply to the rep ayment of suc h loan or to the purchase or redemption of the obligations issued to evi- dence such loan, an amount equal to the amount by which the assessments, taxes, and other charges collected by it exceed (a) the cost of operation and maintenance of the • project, (b) the debt charges on its outstanding obligations, and (c) provision for such reasonable reserves as may be approved by the Corporation ; and ". (4) By adding at the end thereof the following new paragraph

Addit iona l loans for " When any loan is authorized pursuant to the provisions of this repairs and extensions. section and it shall then or thereafter appear that repairs and neces- sary extensions or improvements to the project of such di strict, political subdivision, company, or association are necessary or desirable for the proper functioning of its project or for the further assurance of its ability to repay such loan, and if it shall also appear that such repairs and necessary extensions or improvements are not designed to bring new lands into production, the Corporation, within the limitation as to total amount provided in this section, may make an additional loan or loans to such district, political subdivision, Appli catio n fo r. company, or association for such purpose or purposes . When appli- cation therefor shall have been made by any such district, political subdivision, c ompany, or as sociation any loan authoriz ed by this section may be made either to such district, political subdivision, company, or association or to the holders or representatives of the security. holders of their existing indebtedness, and such loans may be made upon promissory notes collateraled by the obligations of such dis- trict, political subdivision, company, or association or through the purchase of securities issued or to be issued by such district, political subd ivis ion, com pany, or ass ocia ton 1 ." SEC . 12 . (a) Sections 2 and 3 of the Act entitled "An Act to author- I nsura nce com pa- ize the Recons truction Fina nce Corporati on to subscrib e for pre- n`Aoap i20; U.S.C. ferred stock and purchase the capital notes of insurance companies, `upp• VII, p.271. and for other purposes ", approved June 10, 1933, as amended (U .S .C ., Supp . VII, title 15, sees . 605f and 605g), are amended to read as follows "SEc. 2. In the event that any such insurance, company shall be Purchase of capital incorporated under the laws of any State which does not permit it no c ona iio tn oriz`~d. to issue preferred stock, exempt from assessment or additional lia- bility, or if such laws permit such issue of preferred stock only by unanimous consent of stockholders, or upon notice of more than twenty days, or if the insurance company is a mutual organization wit hout capital stock, the Re construction F inance Corpo ration is authorized for the purposes of this Act to purchase the legally issued capital notes of such insurance company, or, if the company is a mutual organization without capital stock, such other form or forms of indebtedness as the laws of the State under which such company I do in original