Page:United States Statutes at Large Volume 48 Part 1.djvu/72

 46 Joi nt- sto ck Iand banks . '3d CONGRE SS. SESS. I. CH. 25. MAY 12, 1933 . FEDERAL FARM-LOAN BONDS AS SE CUR ITY FOR ADVANCES BY r WERAL RESER VE BANKS Fa rm loan bonds as SEC. 2 8. Th e eighth paragra ph of se ction 13 of the F ederal R eserve sec uri ty deal advances Act, as amended, is amended by inserting before the period at the Banks .338, p. 263, end thereof a comma and the following : " or by the deposit or pledge 44 Vol. 39, p. 384; Vol . of bonds issued pursuant to the paragraph added to section 32 of the Antep.41. Fe der al Fa rm Lo an Ac t, as amended by sec ti on 21 of the Emergency Farm Mo rtgage Act of 1933 ." PART 2-JOINT-STOCK LAND BANKS LIMITATIONS ON ISSUE OF BONDS AND LENDING Limitations on issue SEC. 29. After the date of enactment of this Act, no joint-stock ofbonds and lending, land bank shall issue any tax-exempt bonds or make any farm loans except such as are necessary and incidental to the refinancing of existing loans or bond issues or to the sale of any real estate now owned or hereafter acquired by such bank. LOANS TO JOINT-STOCK LAND BANKS TO PROVIDE FOR ORDERLY LIQUIDATION Rec ons tru ct ion Fi- SEC. 30. (a) The Recons truct ion F inance Corp orati on is autho r- Loans to joint-Stock ized and directed to make available to the Farm Loan Commissioner, land banks, to provide order ly li quid ation . out of the funds of the Corporation, the sum of $100,000,000, to be. used, for a period not exceeding two years from the date of enact- ment of this Act, for th e purpos e of mak ing loans to the joint-st ock Interest rate. land banks organized and do ing business under the Fede ral Farm Loan Act, as amended, at a rate of interest not to exceed 4 per centum per annum, payable annually. Such loans shall be made upo n app li cat ion therefor by su ch banks and up on compliance wit h Maxin iuma moun t , the requirements of this section. The amount which may be loaned hereunder to any s uch b ank shall not exceed an amount having the same proportion to the said $100,000,000 as the unpaid principal of the mortgages he ld by s uch b ank on the da te of enactment of thi s Act bears to the total amount of the unpaid principal of the mort- gages held by all the joint-stock land banks on such date. Collateral security. (b) Any joint-stock land ba nk applying for a loan unde r this sectio n sha ll de liver to the Farm Loan Comm issio ner as coll atera l sec ur ity therefor fir st mortgages or purchase-money mortgages on farm lands, first mortgages on farm real estate owned by the bank in fee simple, or such other collateral as may be available to said Appraisal of. bank, including sales contracts and sheriff's certificates on farm U.S.C.,p.304 . lands. The real estate upon which such collateral is based shall be appra ised by appr aise rs a ppoi nted und er the Fede ral Farm Loa n Loans not to exceed Act, as amended, and the borrowing bank shall be entitled to borrow 60 percent of collateral value. not to exceed 60 per centum of the normal value of such real estate as. Fees determined by such appraisal. Fe es for such appraisals sh all be paid by the applicant banks in such amounts as may be fixed by the Farm Loan Commissioner. No such loan sha ll be made until the Ag reement by bank applicant bank, under regul ations to be prescribed by the Farm to reduce interest upon Loan Commissioner (1) shall have agreed to grant to each borrower all first mortgages to 6percent. th en indebted to the bank under the terms of a first mortgage a reduction to 5 per centum per annum in the rate of interest speci- fied in such mortgage, beginning at his next regular installment date Not to proceed occurring more than sixty days after the date of enactment of this default . m ortga gor to Act, and (2) shall have agreed to the satisfaction of the Commis- sioner that during a period of two years from the date of enactment of this Act the bank will not proceed against the mort gagor on account of defau lt