Page:United States Statutes at Large Volume 48 Part 1.djvu/1138

 1112 73d CONGRESS. SESS. II. CH. 653 . JUNE 19, 1934 . Security for loans. is organized permit, or to make loans secured by such notes or such other form or forms of indebtedness as collateral, which may be subordinated in whole or in part or to any degree to claims of other creditors. Requ irem ent b efor e a SEC. 3. The Reconstruction Finance subscription entered. Corporation shall not sub- scribe for or purchase any preferred stock or capital notes of any applicant in surance compa ny, (1) until the applicant shows to the sho win g of un im- satisfaction of the Corporation that it has unimpaired capital, or that paired eaptaL it will furnish new capital which will be subordinate to the preferred stock or capital notes to be subscribed for or purchased by the Cor- poration, equal to the amount of said preferred stock or capital notes o° ansuponpreferred so subscribed for or purchased by the Corporation : Provided, That sto ck or capita l stock. the Corp orat ion may make loa ns u pon said pre ferr ed s tock or capi tal notes, or other form or forms of indebtedness permitted by the laws of the State under which said applicant is organized, if, in its opin- io n, such loans will be adequately secured by said stock or capital notes or other form or forms of indebtedness and/or such other forms compe nsat ion limi- of security as the Corporation may require, (2) if at the time of such tation ; officials of appli- ca nt company. subscription, purchase, or loan any officer, director, or employee of the applicant is receiving total compensation in a sum in excess of areement required. $17,500 per annum from the applicant and/or any of its affiliates, and (3) unless at such time, the insurance company agrees to the satis- faction of the Corporation that while any part of the preferred stock, notes, bonds, or debentures (or, in the case of a mutual insur- ance company, other form or forms of indebtedness permitted by the laws of the State under which the company is organized) of such insurance company is held by the Corporation, the insurance com- tio n ~° of limit officials. compensa pany, exce p t with the consent of the Corporation, will not (a) increase the compensation received by any of its officers, directors, or employees from the insurance company and/or any of its a ffil iate s, and in no event increase any such compensation to an amount 0 ne~ menf of stoc , exceeding $17,500 per annum, or (b) retire any of its stock, notes, poses. bonds, debentures, or other forms of indebtedness issued for capital construed. purposes. For the purposes of this section, the term "compensa- tion " includes any salary, fee, bonus, commission, or other payment direct or indirect, in money or otherwise for personal services ." "Stat e" c onstr ued . (b) Section 11 of such Act of June 10, 1933, as amended (U .S .C., Supp . VII, title 15, sec . 605i ), is amended by adding at the end thereof the following new sentence : "As used in this section and in sections 1, 2, and 3 of this Act, the term `State' means any State, Territory, or possession of the United States, the Canal Zone, and the District o f Columbia. " Farmer's cooperative SEc. 13 . The Reconstruction Finance Corporation is authorized and Loans to hts pools . empowered to make loans upon full and adequate security, based on mineral acreage, to recognized and established incorporated manag- ing agencies of farmers' cooperative mineral rights pools not en- gaged in drilling or mining operations, said loans to be made for the purpose of defraying the cost of organizing such pools . Mining, milling, and smelting industries . SEC. 14 . The Reconstruction Finance Corporation is authorized and Loans to. empowered to m ake loans upo n adequate se curity, based on mineral acreage to recognized and established incorporated agencies, indi- viduals, and partnerships engaged in the business of mining, milling, or smelting of ores . Fishindustry . SEC . 15 . The Corporation is authorized and empowered to make loans under section 5 of the Reconstruction Finance Corporation Act, as amended, to any person, association, or corporation organized under the laws of any State, the District of Columbia, Alaska, Hawaii, or Puerto Rico, for the purpose of financing the production, storage, handl ing, packing, processing, carrying, and/ or orderly