Page:United States Statutes at Large Volume 50 Part 1.djvu/31

 6 Condit ions p re- scribed. Applicant unable to procure elsewhere. Security. Maximum amount. Proviso. D ist res sed eme r- gency ar eas . Interest rate. P roceeds of lo ans impressed wi th a trust. Recording,etc ., tees. Fees for releasing Liens, etc. Of ficers and em- plo yee s authorized ; pay, duties, etc. 5U.S.C.§673. Use of designated agencies, facilities, etc. Other facilities and s ervices. 75 TH C ONGR ESS, 1ST SESSI ON-CH. 7-JANUARY 29, 1 937 SEC. 2. (a) No loan shall be made under this Act to any appli- cant who shall not have first established to the satisfaction of the proper officer or employee of the Farm Credit Administration, under such regulations as the Governor may prescribe, that such applicant is unable to procure from other sources a loan in an amount reasonably adequate to meet his needs for the purposes for which loans may be made under this Act ; and preference shall be given to the applications of farmers whose cash requirements are small. (b) There shall be required as security for any such loan a first lien, or an agreement to give a first lien, upon all crops of which the production or harvesting, or both, is to be financed, in whole or in part, with the proceeds of such loan ; or, in case of any loan, for the Purch ase or produ ction of fee d for livest ock, a first lien upon the livestock to be fed. (c) No loan made under the provisions of this Act to any bor- rower shall exceed $400, nor shall a loan be so made in any calendar year which, together with the unpaid principal of prior loans so made to such borrower in that year, shall exceed $400 in amount Provided, however, That in any area certified by the President of the United States to the Governor as a distressed emergency area, the Governor may make loans without regard to the foregoing limi- tati ons as to am ount, under such r egulat ions, with s uch ma turiti es, and in such amounts as he may prescribe. (d) Each loan shall bear interest at the rate of 4 per centum per annum. SEC. 3 . The proceeds of each loan made by the Governor under the provis ions of this Ac t shall be impr essed wi th a tru st for the purp oses for which loans may be made under this Act, and may be used only for t he pur poses stated in th e appl icatio n ther efor, and su ch tru st shall continue, and the proceeds shall be free from garnishment, attachment, or the levy of an execution, until such proceeds have been used by the borrower for such purposes. S E C. 4 . (a) Fees f or recor ding, fi ling, re gistrat ion, and examina tion of rec ords (in cluding certific ates) s hall not exceed 75 cent s per lo an, and may be paid from the proceeds of the loan. (b) No fees for releasing liens given to secure loans made pursuant to this Act, nor any other fee not specified herein, shall be paid from the funds herein authorized to be appropriated. SEC. 5 . (a) The Governor shall have power, without regard to the provisions of other laws applicable to the employment and compen- sation of officers and employees of the United States, to employ and fix the compens ation an d dutie s of suc h agents, offic ers, and employe es as may be necessary to carry out the purposes of this Act. ; but the compe nsati on of such offi cers and e mploy ees s hall corr espon d, so far as the Governor deems practicable, to the rates established by the Classification Act of 1923, as amended. (b) Such agents, officers, and employees, or any of them, and they agents, officers, employees, and facilities of the Farm Credit Admin- istrat ion av ailabl e for use in conne ction with l oans m ade un der th e provisions of this Act or of prior crop production, seed, and feed loan Acts of th e sam e gen eral chara cter, may be us ed by the Gov- ernor to perform services for any institution operating under the supervision of the Farm Credit Administration, upon such terms and conditions as the Governor may determine ; and such institutions are h ereby expr essly empo wered to e nter into agree ments with the Governor for such purpose. (c) For the purpose of carrying out the provisions of this Act, and for collecting loans made under other Acts of the same general character, including loans made by the Governor with funds appro-