Page:United States Statutes at Large Volume 48 Part 1.djvu/76

 50 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . and ma intenanc e of the project and int erest on its out standing obli- Correspondingreduc- ations ; and (5) the borrower shall agree, to the satisfaction of the tion of indebtedness to g borrower. Corporation, to reduce the outstanding indebtedness to the borrower Post, p.1269. of the landowners within such p rojec t by an amo unt c orres pondin g to that by which the indebtedness of the borrower is reduced by reason of the operatio n of thi s sectio n, to di stribute the amo unt of such reduction among such landowners on a pro rata basis, to cancel Cancellation to equal and retire its outstanding bonds in an aggregate am ount equ al to reduction so d istr ib- uted * the amount of the reduction so distributed, and to permit the Cor- Corporatlon to par- poration, in the case of the payment of the bonds of the borrower tici pate. or the liquidation of such project, to participate in such payment or in the proceeds of such liquidation on the basis of the face amount of the bonds so retired plus the face amount of the bonds held by Requirements to be the Corporation as security for the loan. No loan shall be made met before loan made . under this section until the Reconstruction Finance Corporation (A) has caused an appraisal to be made of the property securing and/or underlying the outstanding bonds of the applicant, (B) has deter- mined that the project of the applicant is economically sound, and (C) has been satisfied that an agreement has been entered into between the app licant a nd the h olders o f its ou tstandin g bonds under which the applicant will be able to purchase or refund such bonds at a price determined by the Corporation to be reasonable after takin g int o cons idera tion the av erage mark et pri ce of such bonds over the six months' period ending March 1, 1933, and under which a substantial reduction will be brought about in the amount of the outstanding indebtedness of the applicant. Advances to reclama- SEC. 37. The Reconstruction Finance Corporation, upon request lionl.47 p t 5°Vol. ii, of the Secretary of the Interior, is authorized and empowered to p .388. ad va nce from funds made available by section 2 of the Act of Maximum amount. January 22, 1932 (47 Stat .L . 5), to the reclamation fund created by the Act of June 17, 1902 (32 Stat .L . 388), such sum or sums Repa yment. as the Secretary of the Interior may deem necessary, not exceeding $5,000,000, for the completion of projects or divisions of projects now under construction, or projects approved and authorized. Fun ds so advanced shall be repaid out of any receipts and accretions accru- ing to the reclamation fund within such time as may be fixed by the Reconstruction Finance Corporation, not exceeding f ive years from the date of advance, with interest at the rate of 4 per centum per annum. Sums so advanced may be expended in the same way as other moneys in the reclamation fund. Pro rata basis. Post, p 1269. Manner of expendi- ture. Interest rate. Incr eas e of lending power of Corporation. Vol.47,p.9. Post, p. 319. Farm Loan Co mmis- sioner. Functions of, under Executive orders. Vol. 47, p . 413. PART 5-INCREASE OF LEN DI NG POW ER OF RE CON STR UCT ION FIN ANC E CORPORATION SEC. 38. In order to provide funds to carry out the purposes of this title, the amount of notes, debentures, bonds, or other such obli- gations which the Reconstruction Finance Corporation is authorized and empowered under section 9 of the Recon struct ion F inanc e Cor- poration Act, as amended, to have outstanding at any one time, is hereby increased by $300,000,000. PART 6-FUNCTIONS OF FARM LOAN COMMISSIONER UNDER EXECUTIVE ORDE RS SEC. 39. If and when any executive order heretofore transmitted to the Congress pursuant to title IV of part II of the Legislative Appropriation Act of 1933, as amended, shall become effective, all functio ns, powe rs, auth ority, a nd dutie s confer red upon or vest ed in the F arm L oan Co mmiss ioner by this title shall be held and exer-