Page:United States Statutes at Large Volume 48 Part 1.djvu/70

 44 Les s any savings effected. Post, p.48. Final payments. App ro pri ati on au- thorized. Post, p. 279. Federal land bank mortgage loans. Maxi mum li mit in- creased. Vo1. 42, p. 1476 . U.S.C., p.306. Restriction. Interest rate. 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . tary of the Treasury is equal to the amount by which interest pay- ments on mortgages held by such bank have been reduced, during the preceding quarter, by reason of this paragraph ; but in any case in which the Farm Loan Commissioner finds that the amount of interest payable by such bank during any quarter has been reduced by reason of the refinancing of bonds under section 32 of this Act, the amount of the reduction so found shall be deducted from the amount payable to such bank under this paragraph. No pay ments shall be made to a bank with respect to any perio d after June 3 0, 1938. There is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $15,000,000 for the purpose of enabling the Secretary of the Treasury to make payments to Federal land banks which accrue during the fiscal year ending June 30, 1934, and such additional amounts as may be neces- sary to make payments accruing during subsequent fiscal years. INCREASE OF AMOUNT OF LOANS TO BORROWERS SEC. 25 . Paragraph "Seventh " of section 12 of the Federal Farm Loan Act, as amended (U.S .C ., title 12, sec . 771) (relating to the limitations as to amount of loans), is amended by stri king out " $25,000 " and inserting " $50,000, but loans to any one borrower shall not exceed $25,000 unless approved by the Fa rm Loan Commissioner ." DIRECT LOANS Federal Lo an Act , meed. SEC. 26 . Section 7 of the Federal Farm Loan Act, as amended, Vol. .c, p. 30. is amended by striking out the last paragraph and inserting in lieu Direct loans on first thereof the followin g new paragraphs mortgages to farmers " Whenever it shall appear to the Farm Loan Commissioner that able to apply to Federal land bank, etc . national farm-loan associations have not been formed in any locality in the conti nental United States, or t hat the farmer s residing in the territory covered by the charter of a national farm-loan associa- tion are unable to apply to the Federal land bank of the district for loans on account of the inability of the bank to accept applications from such association, the- Farm Loan Commissioner shall authorize said bank to make direct loans to borrowers secured by first mort- gages on farm lands situated within any such locality or territory . - provisions govern- Except as herein otherwise specifically provided, all provisions of this Act applicable with respect to loans made through nati onal farm-loan associations shall, insofar as practicable, apply with respect to such direct loans, and the Farm Loan Commissioner is authorized to make such rules and regulations as he may deem necessary with respect to such direct loans. " The rate of interest on such direct loans made at any time by any Federa l land bank shall be on e-half of 1 per c entum per an num in excess of the rate of interest charged to borrowers on mortgage loans made at such time by the bank through national farm-loan Borrower required to iiSSOC1at10IIS . co venant for pro por- "Each borrower who obtains a direct loan from a Federal land bank, stock in such bank shall sub scribe and pa y for stock i n such bank in the sum of Use as collateral se- $5 for each $100 or fraction thereof borrowed. Such stock s hall cmtity, etc. be held by such Federal land bank as collateral security for the loan of the borrower and shall participate in all dividends. Upo n full loans repayment. upon payment of the loan such stock shall, if still outstanding, be can- celed at par, or, in the event that such stock shall have become impaired, at the estimated value thereof as approved by the Farm Loan Commissioner, and the proceeds thereof shall be paid to the borrower.