Page:United States Statutes at Large Volume 48 Part 1.djvu/73

 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . 47 the terms of its mortgage and will not foreclose its mortgage unless ceNot too fooreo se a ex- when - the property covered by such mortgage is abandoned by the mort- ment, etc. gagor or unless, in the opinion of the Commissioner, such fore- closure is necessary for other reasons. Such loans shall be made to aid the orderly liquidation of any such bank in accordance with such plan as may be approved by the Farm Loan Commissioner. Before Approval necessary. any such plan is approved by the Commissioner he shall be satisfied th at the plan carrie s out the pu rposes of thi s sect ion an d that such part of the proceeds of the loan as is devoted to settlements with bo ndhold ers wi ll be used o nly to effec t an eq uitabl e sett lement with Notice to bondhold- all bondholders. After the plan has been approved by the Commis- ers, etc. sioner he shall require the bank to mail a copy thereof to all its known bondholders and to publish a notice setting forth its provi- sions in at least three newspapers having general circulation. LOAN S BY THE FAR M LO AN COM MIS SIO NER TO JOI NT- STO CK L AND BA NKS POR EMERGENCY PURPOSES SEC. 31 . (a) Out of the funds made available to him under see- Farm Loan Commis. sioner. tion 30, the Farm Loan Commissioner is authorized to make loans, Loans by, to joint- stock land banks, for in an aggregate amount not exceeding $25,000,000, at a rate of interest certain emergencies. not to exceed 4 per centum per annum, to any joint-stock land bank for the purpose of securing the postponement for two years from the date of the en actment o f this Ac t of the foreclosu re of fir st mort- gages held by such banks on account of (1) default in the payment fault ccointeref de- of interest and principal due under the terms of the mortgage, and princip al. (2) unpaid delinquent taxes, excluding interest and penalties, which "'in"uenttases,etc. may be secured by the lien of said mortgage : - Provided, That during Provisos . g rate dnrin the p eriod of p ostp oneme nt of for eclos ure s uch b ank shall char ge p eriod. the mortgagor interest at a rate not exceeding 4 per centum per annum on the aggregate amount of such delinquent taxes and defau lted inter est and p rinci pal with respe ct to whi ch lo ans a re made pursuant to this section. The amount loaned to any joint-stock sa Reappraisalunneces- land bank under this section shall be made without reappraisal : Provi ded, That the a mount loa ned w ith r espe ct to any mortg age on Maximum loan on account of unpaid principal shall not exceed 5 per centum of the c ip a luntofnn paiapri n- total unpaid principal of such mortgage, and the total amount loaned to any such land bank with respect to any mortgage shall not exceed 25 per centum of the total unpaid principal of such mortgage. (b) No such loan shall be made with r espect to any mortgage inCo d iitions for mak- unless the Farm Loan Commissioner is satisfied that the mortgagor, Default ofmortgagor. after exercising ordinary diligence to pay his accrued delinquent taxes, and meet accrued interest and principal payments, has default ed the reon ; a nd unless the bank shall ha ve agreed to the s atis- Bank will not fore- faction of the Farm Loan Commissioner that during such two-year close. period the bank will not foreclose such mortgage unless the prop- Except ions. erty covered thereby is abandoned by the mortgagor or unless in the opinion of the Farm Loan Commissioner such foreclosure is necessa ry for other reaso ns. c Each such loan shall be secured by an assignment to the Farm Loan to be secured by assign ment of tax Loan Commissioner of the lien of the taxes and/or of the bank's lien, mortgage, etc. mortgage with respect to which the loan is made : Provided, That status' of assigned the part of each such lien so assigned representing the interest and lien. principal due and unpaid in any such mortgage which has been assigned to the farm loan registrar shall be subordinate to the existing lien of the bank for the balance of the indebtedness then or thereafter to become due under the terms of such mortgage ; but the Farm Loan Commissioner may require the bank to furnish addi- ay Additional collateral m be required. tional collateral as security for such loan, if such collateral is availa ble to the b ank.