Page:United States Statutes at Large Volume 49 Part 1.djvu/47

 2 74TH CONGRESS. SESS. I. CH. 2 . JANUARY 31, 1935. Vol. 49, pp. 1108, 1110. S Ec. 2 . (a) Except as provided i n section 5d of the Reconstruc - Post,p.4. tion Finance Corporation Act, as amended by section 10 hereof, and in section 9 of an Act entitled "An Act relating to direct loans for industrial purposes by Federal Reserve banks, and for other pur- Rest ric tion on di s• poses " approved June 19, 1934, no funds shall be disbursed on an burs ement of funds ; > 7 y commitments hereafter commitment or agreement hereafter made by the Reconstruction made . Finance Corporation to make a loan or advance, subscribe for stock, or purchase capital notes or debentures, after the expiration of one year from the date of such commitment or agreement ; but within the peri od of such one year limitation no provision of law terminating any of the functions of the Reconstruction Finance Corporation shall be construed to prohibit disbursement of funds on commitments or agreements to make loans or advances, subscribe for preferred stock, or purchase capital notes or debentures. Commi tmen ts here. (b) Notwithstanding any other provision of law, disbursement tofore made. may be made at any time prior to January 31, 1936, on any com- mitment or agreement heretofore made by the Corporation to make a loan or advance, subscribe for preferred stock, or purchase capital notes or debentures. Loans ; periods of. SEc . 3 . Notwithstanding any other provision of law limiting the maturity of obligations taken by it to shorter periods, the Recon- Renewais or exten- struction Finance Corporation may make loans or advances or re- sions. newals or extensions thereof to authorized borrowers or by other Final maturity date, suitable agreement permit them to run so as to mature at such time or times as the Corporatio n may determine, not later tha n January Provi so. RRailroad loans, etc . 31, 1945 : Provided, That in respect of loans or renewals or exten- Us4,pp.,714 sloes of loans or purchases of obligations under section 5 of the Reconstruction Finance Corporation Act, as heretofore and herein amended (U . S. C ., Supp . VII, title 15, ch . 14), to or of railroads, the Corporation may require as a condition of making any such loan or renewal or exte nsion for a pe riod longer tha n five years, or purchasing any such obligation maturing later than five years Amort ization p rovi- from the date of purchase by the Corporation, that such arrange- sion. ments be made for the reduction or amortization of the indebted- ness of the railroad, either in whole or in part, as may be approved by the Corporation after the prior approval of the Interstate Com- merce Commission. Vol. 47, p.6;u. S.C., SEC. 4. (a) Section 5 of the Reconstruction Finance Corporation p. 573. Act, as amended (U. S. C., Supp. VII, title 15, ch. 14), is further amended by striking out all of the third sentence of the third para- graph thereof through the first colon and inserting in lieu thereof rob li attiio~nss of. rail- the following : " Within the foregoing limitations of this section, the state commerce . Corp oration, notwit hstanding any l imitation of l aw as to maturi ty, with the approval of the Interstate Commerce Commission, includ- tee urcha poato n an- ing approval of the price to be paid, may, to aid in the financing ) reorganization, consolidation, maintenance, or construction thereof, purchase for itself, or for account of a railroad obligated thereon, th e obli gations of ra ilroad s enga ged in inters tate c ommerc e, inc luding equipment trust certificates, or guarantee the payment of the prin- cipal of, and/or interest on, such obligations, including equipment trust c ertifi cates, or, w hen, in the o pinion of th e Corpo ration, fund s Loans authorized. are not available on reasonable terms through private channels, make loans, upon full and adequate security, to such railroads or to Pr ovisos. receivers or trustees thereof for the purposes aforesaid : Provided, certificate required. That in the case of loans to or the purchase or guarantee of obliga- tions, includin g equipment tru st certificates, of railroads not in receivership or trusteeship, the Interstate Commerce Commission shall, in con nectio n with its ap proval there of, al so cert ify th at suc h railroa d, on the ba sis of presen t and prospe ctive earning s, may reaso n-