Page:United States Statutes at Large Volume 48 Part 1.djvu/68

 42 For making new loans. Purchasing outstand- ing farm mortgages. Vol.39,p. 372; U.S.C. p. 306. Maximum issue; de- nominations, etc. Interest guaranteed. Pa yment by Secre- ta ry if i ssuing bank unable. Appropriation au- thorized. To become obligation against such bank. Use, for refinancing outstanding loans. Final issue. Bo rrower ma y ten- d er in teres t-gua rante ed bonds in payment. Ac ceptanc e at par authorized. Fa rm mort gages. Vol. 39, p. 37 2, amended. U.S.C.,p. 306. Post, p. 347. Purchase, reduction, refinancing, etc. Limitation on price . Proviso. Mortgagor's rights. Vol. 39, pp. 365, 367; U .S .C ., pp. 302-304. 73d CONGRESS. SESS. I. CH.25. MAY 12 ,1933 . this paragraph takes effect, Federal land banks may issue farm-loan bonds as autho rized under t his Act, for the purpose of making new loans, or for purchasing mortgages or exchanging bonds for mort- gages as provided in paragraph ' Second' of section 13 of this Act. The a ggrega te amo unt o f the bonds issued unde r this parag raph shall not exceed $2,000,000,000, and such bonds shall be issued in such denominations as the Farm Loan Commissioner shall prescribe, shall bear interest at a rate not in excess of 4 per centum per annum, and shall be fully and unconditionally guaranteed as to interest by the United States, and such guaranty shall be expressed on the face thereof. In the event that it shall appear to the Farm Loan Com- missioner that the issuing bank or banks will be unable to pay upon demand, when due, the interest on any such bonds, the Secretary of the Treasury s hall, upon th e request of the Commission er, pay the amount thereof, which is he reby authoriz ed to be appro priated out of any money in the Treasury not otherwise appropriated. Upon the payment of such interes t by the Secr etary of the T reasury the amount so paid shall become an obligation to the United States of the issuing bank or banks and shall bear interest at the same rate as that borne by the bonds upon which the interest has been so paid. After the expiration of one year from the date this paragraph takes effect, if in the opinion of the Farm Loan Commissioner any part of the proceeds of the bonds authorized to be issued under this para- graph is not required for the purpose of making new loans or for purchasing mortgages or exchanging bonds for mortgages as herein provided, such bonds may be issued within the maximum limit herein specified for the purpose of refinancing any outstanding issues of Federal farm-loan bonds ; but no such bonds shall be issued after two years from the date this paragraph takes effect for the purpose of such refinancing. Any borrower who obtains a loan from a Federal land bank after the date this paragraph takes effect may, at any time after the expiration of five years from the date such loan was made, tender to such bank on any regular installment date, bonds issued under this paragraph in an amount not to exceed the unpaid principal of his loan, and the bonds so tendered shall be accepted by the bank at par in payment of any part of such unpaid principal ." PURCHASE, REDUCTION, AND REFINANCING OF FARM MORTGAGES SEC. 22. Paragraph " Second " of section 13 of the Federal Farm Loan Act, as amended, is amended by adding at the end thereof the following new sentence " In order to reduce and/or refinance farm mortgages, to invest such funds as may be in its possession in the purchase of first mortga ges on farm lands situa ted wi thin t he Fe deral land-b ank district within which it is organized or for which it is acting, or to exchange farm-loan bonds for any duly recorded first mortgages on farm lands executed prior to the date this paragraph, as amended, takes effect, at a price which shall not exceed in each individual case the amount of the unpaid principal of the mortgage on the date of such purchase or exchange, or 50 per centum of the normal value of the land mortgaged and 20 per centum of the value of the permanent insured improvements thereon as determined upon an appraisal made pursuant to this Act, whichever is the smaller : Provided, That any mortgagor whose mortgage is acquired by a Federal land bank under this paragraph shall be entitled to have his farm-mortgage indebtedness refinanced in accordance with the provisions of sections 7 and 8 of this Act on the basis of the amount paid by the bank for his mo rtg age ."