Page:United States Statutes at Large Volume 49 Part 1.djvu/842

 74 TH CONGRESS. SESS. I. CH. 646. AUGUST 24, 1935 . 797 t io n ; (4) the borrower shall agree, ins ofar as it may la wfully do s insp aym ent provi- so, that so long as any part of such loan shall remain unpaid the borrower will in each year apply to the repayment of such loan or to the purchase or redemption of the obligations issued to evidence such l oan, an amount eq ual to the amount by which the ass essments, taxes and other funds received by it for the benefit of public schools exceeds (a) the cost of operation and maintenance of the public- school facilities which are financed in whole or in part by such amount of assessments, taxes or other charges, received by it ; (b) the debt charges on its outstanding obligations ; and (c) provisions for such reasonable reserves as may be approved by the Corporation. No loan shall be made under this section until the Corporation (a) a emaa, etc ., re- has caused an appraisal to be made of the ta xpaying ability o f the taxing district or other territory throughout which assessments, taxes, or other charges are authorized to be levied for the purpose of paying the costs of, or for the purpose of securing funds to repay indebtedness incurred to finance the construction, operation, and/or maintenance of the public-school facilities on account of which the indebtedness was incurred or obligations assumed which are to be reduced and refinanced in connection with a loan from the Corpo- ration made under this section ; (b) has been satisfied that an agree- Refinancing. ment has been entered into with the holders of outstanding bonds, notes, and/or other obligations incurred by or for the benefit of the tax- suppo rted pub lic- schoo l di stri ct or oth er s imil ar pu blic - school authori ty in charge of p ublic schools whi ch indebtedness o r obligations are to be reduced and refinanced in connection with a loan f rom the Co rporation, under wh ich agreem ent it wi ll be p ossible to purcha se, reduce, or re fund all or a maj or portion of the aggregate of outstanding in debtedness and ob ligations incurre d by or on behalf of such district or authority at a price determined by the Corporation to be reasonable after taking into consideration the average market price of the evidences of the indebtedness or obligations to be reduced and refinanced over the six months' period ending January 1, 1935, and under which a substantial reduction will be brought about in the aggregate of such outstanding indebted- ness and obligations ; and (c) has det ermi ned, in view of such soundessnness of economic . appraisal of taxpaying ability and of such substantial reduction in the aggregate of such outstanding indebtedness and obligations, that the operation of the public-school facilities to refinance indebt- edness or obligations incurred for the benefit of which a loan from the C orporation is app lied for under th is section, is ec onomically sound and will promote the general welfare of the community. When any loan is authorized pursuant to the provisions of this Additional loans for section and it shall then or thereafter appear that repairs and repairs, etc. necessary extensions or improvements to the public-school facilities, to refinance the indebtedness or obligations incurred for the benefit of which such loan is authorized, are necessary or desirable for the further assurance of the ability of the borrower to repay such loan, the Corpo ration, within th e limitation as t o total amount pr ovided in this s ection, may make an additional loa n or loans to suc h bor- rower for such purposes. The proceeds of any loan applied for by a borrower under th is to nse of proceeds of section may be paid either to such borrower or to the holders or representatives of the holders of the bonds, notes, and/or other obligations to be reduced and refinanced in connection with such loan, and such loans may be made upon promissory notes collateraled by such bonds, notes, and/or other obligations, or through the pur- chase of securities issued or to be issued by such borrower.