Page:United States Statutes at Large Volume 48 Part 1.djvu/59

 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . 33 and to carry out the provisions of this section, is authorized to Indemnification of indemn ify or furni sh bo nds to wareh ouseme n for lost wareho use lost receipts. receipts and to pay the premiums on such bonds. When full legal title to the cotton referred to in (b) has been of ASale g ric of, o Secretary acquired, it shall be sold to the Secretary of Agriculture for the purposes of this section, in the same manner as provided in (a). (c) The Secretary of Agriculture is hereby authorized to purchase Pur chase author ized. the cotton specified in paragraphs (a) and (b). S ecret ary may bor- SEC. 4 . The Secretary of Agriculture shall have authority t o ro w, using war ehouse borrow money upon all cotton in his possession or control and rec eipts as colla teral. deposit as collateral for such loans the warehouse receipts for such Post, p. 1058. cotton. SEC. 5 . The Reconstruction Finance Corporation is hereby author- Rec onstruction Fi- nance Corporation. ized and directed to advance money and to make loans to the Secre- . Lo ans by, aut hor- tary of Agriculture to acquire such cotton and to pay the classing ized. carrying, and merchandising costs thereon, in such amounts and upon such terms as may be agreed upon by the Secretary and the Reconstruction Finance Corporation, with such warehouse receipts as collateral security : Provided, however, That in any instance Proviso. Security other than where it is impossible or impracticable for the Secretary to deliver warehouse receipts. such warehouse receipts as collateral security for the advances and loans herein provided to be made, the Reconstruction Finance Corporation may accept in lieu of all or any part thereof such other security as it may consider acceptable for the purposes aforesaid, including an assignment or assignments of the equity and interest of the Secretary in warehouse receipts pledged to secure othe r ObligationsofCorpo. inde bted ness. The amount of notes, bonds, debentures, and other ration increased. such obligations which the Reconstruction Finance Corporation is Vol .47,p.9. authorized and empowered to issue and to have outstanding at any one time under existing law is hereby increased by an amount suffici ent to carry o ut the provis ions of this section. Option contracts to SEC. 6. (a) The Secretary of Agriculture is hereby authorized to sell cotton to producer enter into option contracts with the producers of cotton to sell to in "" 0"'P produc- y any such producer an amount of cotton to be agreed upon not in tion, 1933 . excess of the amount of reduction in production of cotton by such producer below the amount produced by him in the preceding crop Post, p . 601greement year, in all cases where such producer agrees in writing to reduce to reduce production . the amount of cotton produced by him in 1933, below his production in the previous year, by not less than 30 per centum, without increase in commercial fertilization per acre . Nontransferable op- (b) To any such producer so agreeing to reduce production the tion contracts . Secretary of Agriculture shall deliver a nontransferab le-option contract agreeing to sell to said producer an amount, equivalent to the amount of his agreed reduction, of the cotton in the possession and control of the Secretary. Producer's option to (c) The producer is to have the option to buy said cotton at the buy, at price paid by average price paid by the Secretary for the cotton procured under Secretary. section 3, and is to have the right at any time up to January 1, 1034, to exercise his option, u pon proof tha t he has compl ied with his contract and with all the rules and regulations of the Secretary of Agriculture with respect thereto, by taking said cotton upon pay- Secretary may sell, ment by him of his option price and all actual carrying charges on for producer's account. such cotton ; or the Secretary may sell such cotton for the account of Net profits to inure such producer, paying him the excess of the market price at the date to producer. of sale over the average price above referred to after deducting all actual and necessary carrying charges : Provided, That in no event Liability for lo,;. shall the producer be held responsible or liable for financial l oss incurred in the holding of such cotton or on account of the carrying Use of land restricted. char ges ther ein : Provided further, Tha t such agreem ent to curtai l 86 637 °-34 -3