Page:United States Statutes at Large Volume 48 Part 1.djvu/74

 48 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . Rules, etc ., author- (d) The Farm Loan Commissioner is authorized to make such ized. rules and regulations as may be necessary to carry out the purposes of this section and to make the relief contemplated immediately available. Loans to farmers by Farm Loan Commis- sioner. PART 3-LO ANS TO F ARMERS BY FARM LO AN COMMIS SIONER REDUCTION OF DEBTS AND REDEMPTION OF FORECLOSED FARMS duteccttloans~able for SEC. 32. The Reconstruction Finance Corporation is authorized Post, pp. 345, 34e, and directed to allocate and make available to the Farm Loan Coin- 347, 1060. missioner the sum of $200, 000, 000, or so much thereof as may be necessary, to be used for the purpose of making loans as hereinafter security. provided to any farmer, secured by a first or second mortgage upon the whole or an y part of t he far m prop erty, real or per sonal, Max imum amount, including crops, of the farmer. The amount of the mortgage given including existing in- by any farmer, together with all prior mortgages or other evidences de bte dne ss. o f indebtedness secured by such farm property of the farmer, shall LSC ., p.304. not exceed 75 per centum of the normal value thereof, as determined upon an appraisal made pursuant to the Federal Farm Loan Act, as Post, p. 347. amended ; nor shall a loan in excess of $5,000, be made to any one repayenAmortization plan of farmer. Every mortgage made under this section shall contain an agreement providing for the repayment of the loan on an amorti- zation plan by means of a fixed number of annual or semiannual installments, sufficient to cover (1) interest on unpaid principal at a rate not to exceed 5 per centum per annum and (2) such payments equal in amount to be - applied on principal as will extinguish the debt within an agreed period of not more than ten years or, in the case of a first or second mortgage secured wholly by real property and made for the purpose of reducing and refinancing an existing mortgage within an ,agreed period no greater than that for which Pro ais o loans may be made under the Federal Farm Loan Act, as amended, . Payments on prin- from the date the first payment on principal is due
 * Provided, That

ci years, if not m ended first st3 during the fi rst th ree yea rs the loan i s in ef fect pa yments of int erest default . on ly ay be required if the borrower shall not be in default with respect to any other condition or covenant of his mortgage. No er A greem of prior mo rtgageort iahbold- loan shall be made under this section unless the holder of any prior - mortgage or instrument of indebtedness secured by such farm prop- erty arranges to the satisfaction of the Farm Loan Commissioner to limit his right to proceed against the farmer and such farm Purposes set forth. property for default in payment of principal . Loans under this Refinancing indebt- ed ness Section shall be made for the following purposes only : (1) Refinanc- ing, e ither in con necti on wit h proc eeding s und er cha pter V III Vol. 47, p. 1467. of the Bankruptcy Act of July 1, 1898, as amended (relating to agricultural compositions and extensions), or otherwise, any P rovidi ng wo rking indebtedness, secured or un secured, of t he farmer, (2) providing capital. Redemption or re- workin g capi tal fo r his farm operat ions, and ( 3) ena bling any purchase of fa rm farmer to re deem a nd/or repur chase farm p roper ty own ed by him Post, p. 929. prior to foreclosure which has been foreclosed at any time between July 1, 1931, and the date of the enactment of this Act, or which is Chargesn borrowers. foreclosed after the enactment of this Act. The provisions of para- graph "Ninth" of section 13 of the Federal Farm Loan Act, as amended (relating to charges to applicants for loans and borrowers from the Federal land banks), shall, so far as practicable, apply to "F armer" defin ed. loans made under this section. As used in this section, the terni " farmer " means any individual who is bona fide engaged in farming operations, either personally or through an agent or tenant, or the principal part of whose income is derived from farming operations, and includes a personal representative of a deceased farmer.