Page:United States Statutes at Large Volume 48 Part 1.djvu/69

 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . 43 EXTENSION OF LOANS SEC. 23. Paragraph "Tenth " of section 13 of the Federal Farm vx nsi p. 14.e ~ Loan Act, as amended (U .S .C ., title 12, sec. 781), is amended by p un s .me up . vi, adding at the end thereof the following : The terms of any such Term not to exceed extension shall be such as will not defer the collection of any borrower's capacity to meet. obligation due by any borrower which, after investigation by the Post, p. 1060. bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension made prior to the expiration of five years from the date this paragraph as amended takes effect, or in the case of any deferment of principal as provided in paragraph `Twelfth' of section 12 of this Act, it shall be the duty of the Secretary of the Treasury, on behalf of the United doreauId-in sburpl~ States, upon the request of the Federal land bank making the to cover extension, etc. extension, and with the approval of the Farm Loan Commissioner, to subscribe at such periods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such subscriptions shall be subject to call, in t Sabls cript ionss ubjec t whole or in part, by the bank with the approval of the Commissioner upon thi rty days ' no tice. T o enable the Secretary of the Treasury Su m autho rized for. to make such subscriptions to the paid-in surplus of the Federal land banks, there is hereby authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available unt il exp end ed. Upon payment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Farm Loan Commissioner. The amount of any Repayment. subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the ap proval of t he Far m Loan Commi ssion er, an d the Com- missioner may at any time r equire such s ubscriptions t o be repaid in whole or in part if in his opinion the bank has resources available ther efor ." REDUCTION OF INTEREST ON LO ANS AND DEFERMENT OF PRINCIPAL Loans and deferment of principal. SEC . 24. Section 12 of the Federal Farm Loan Act, as amended amended. Vol . 39, p. 37 2, (U.S.C., title 12, sees . 771-772), is amended by adding at the end U.S.C. p.306. thereof the fo llowing new p aragraph « < Interest rate on loans Twelfth . Notwithstanding the provisions of paragraph' Second, by national farm-loan the rate of interest on any loans on mortgage made through national associations r307 ced . farm-loan associations or through agents as provided in section 15, or pur chased from joint -stock land banks, by a ny Fed eral l and bank, outstanding on the date this paragraph takes effect or made through national farm-loan associations within two years after such date, shall not exceed 41/2 per centum per annum for all interest payable on installment dates occurring within a period of five years Payment of princi. commencing s ixty days aft er the date t his paragraph takes effect ; pa l su spe nde d if bor - and no payment of the principal portion of any installment of any rower not in default. such loan shall be required during such five-year period if the bor- rower shall not be in default with respect to any other condition or covenant of his mortgage. The foregoing provisions shall apply bankp loans to loans made by Federal land banks through branches, except that rate reduced. the rate of interest on such loans for such five-year period shall be 5 per centum in lieu of 41 /2 per centum. The Secretary of the to compensation for Treasury shall pay each Federal land bank, as soon as practicable Appropriation ior. after October 1, 1933, and after the end of each quarter thereafter, Post, p. 279. such amount as the Farm Loan Commissioner certifies to the Secre-
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