Page:United States Statutes at Large Volume 49 Part 1.djvu/48

 74 TH CONG RESS. SESS. I. CH. 2 . JANUARY 31, 1935. 3 ably be expected to meet its fixed charges, without a reduction thereof through judicial reorganization, except that such certificate shall not be requi red in case o f such loans made for the maint enance of, o r pur- chase of equipment for, such railroads : And provided further, That Gua ra nt ies to be in- for the purpose of determining the general funds of the Corporation terpreted as loans. available for further loans or commitments, such guaranties shall, to the extent of the principal amount of the obligations guaranteed, be interpreted as loans or commitments for loans : Provided further, Aggregate amount of That the total amount of loans and commitments to railroads, loans. receivers, and trustees, and purchases and guaranties of obligations of railroads, under this paragraph, as amended, shall not exceed at any one time $350,000,000, in addition to loans and commitments made prior to the date of enactment of this Act and renewals of loans and commitments so made : " (b) Section 5 of th e Reconstructio n Finance Corp oration Act, as Railroad reorganiza- amended (U . S. C ., Supp . VII, title 15, ch . 14), is further amended by 'iPiovlsion repealed . striking out at the end of the third paragraph thereof the colon and CVopl, s 1,p.121;u . S. 11 the foll owing : " Provided further, That th e Corp oration may m ake said loans to trustees of railroads which proceed to reorganize under section 77 of the Bankruptcy Act of March 3, 1933 ", and inserting in lieu thereof a period . SEC . 5. The Reconstruction Finance Corporation Act, as amended Vol . 48, p. 1109. (U. S . C ., Supp . VII, title 15, ch . 14), is further amended by inserting after section 5b thereof the following new section " SEC. 5c. To assist in the reestablishment of a normal m ortgage Loan s to m ortgage market, the Reconstruction Finance Corporation may, with the associations up on non- assessable stock. approval of the President, subscribe for or make loans upon the non- assessable stock of any class of any national mortgage association organized under Title III of the National Housing Act and of any Vol. 48, p. 1252. mortgage loan company, trust company, savings and loan associa- To other loan com- tion, or other similar financial institution, now or hereafter incor- parries. porated under the laws of the United States, or of any State, or of the District of Columbia, the principal business of which institution is that of making loans upon mortgages, deeds of trust, or other instruments conveying, or constituting a lien upon, real estate or Purchase of capital any interest therein. In any case in whi ch, under the l aws of its no tes or debent ures. incorporation, such financial institution is not permitted to issue non- assessable stock, the Reconstruction Finance Corporation is author- ized, for t he purp oses o f this secti on, to purcha se the legal ly iss ued capit al not es or d ebentu res of such financi al ins tituti ons. The total looms`'"tee "t of face amount of loans outstanding, nonassessable stock subscribed for, and capital notes and debentures purchased and held by the Reconstruction Finance Corporation, under this section, shall not exceed at any one time $100,000,000. Notwithstanding any other Disposal of securities provision of law, the Reconstruction Finance Corporation may, under acquired . such rules a nd regulations as it may pres cribe (which regulations shall include at least sixty days' notice of any proposed sale to the issuer or maker), sell, at public or private sale, the whole or any part of the stock, capit al not es, or debent ures a cquire d by th e Corp oratio n pursuant to this section, and the preferred stock, capital notes, or debentures acquired pursuant to any other provision of law. The ing m obl ga onerain- amount of notes, bonds, debentures, and other such obligations which cr eased . the Reconstruction Finance Corporation is authorized and empowered to issue and to have. outstanding at any one time under existing law is hereby increased by an amount sufficient to carry out the provisions of this section ." SEC . 6 . Section 5e a of the Reconstruction Finance Corporation Loans or purchases ofassetsofclosedbanks. Act, as amended, is amended (1) by inserting in the first sentence Vol.48,p.971 . thereof after the words " the. assets " and before the words " of any