Page:United States Statutes at Large Volume 50 Part 1.djvu/548

 75TH CONGRESS, 1ST SESSION-CH. 5 1 7-JULY 22, 1937 (c) No loan shall be made for the acquisition of any farm unless it is of such size as the Secretary determines to be sufficient to con- stitute an efficient farm-management unit and to enable a diligent farm family to carry on successful farming of a type which the Secretary deems can be successfully carried on in the locality in which the farm is situate d. COUNT Y COMMIT TEES AND LOANS SEC. 2. (a) The County Committee established under section 42 shall- (1) Examine applications (filed with the county agent in the county, or with such other person as the Secretary may desig- nate) of persons desiring to finance the acquisition of farms in the county by means of a loan from the Secretary under this title. (2) Examine and appraise farms in the county with respect to which an application for a loan is made. (b) If the committee finds that an applicant is eligible to receive the benefits of this title, that by reason of his character, ability, and experience he is likely successfully to carry out undertakings required of him under a loan which may be made under this title, and that the farm with respect to which the application is made is of such charac- ter that there is a reasonable likelihood that the making of a loan with respect thereto will carry out the purposes of this title, it sha ll so certify to the Secretary. The committee shall also certify to the Secre tary th e amou nt whic h the c ommitte e finds is the reason able value of the farm. (c) No certification under this section shall be made with respect to any farm in which any member of the committee or any person related to such member within the third degree of consanguinity or affinity has any property interest, direct or indirect, or in which they or either of them have had such interest within one year prior to the date of certification. (d) No loan sh all be made to any p erson o r with respect to any farm unless certification as required under this section has been made with respect to such person and such farm by the committee . TE RMS OF LOANS Co unty commit- tees and loans . Post, p. 529. Powers, etc. 523 S EC. 3 . (a) Loans made under this title shall be in such amount Amount and terms (not in excess of the amount certified by the County Committee to of loans . be the value of the farm) as may be necessary to enable the borrower to acquire the farm and for necessary repairs and improvements thereon, and shall be secured by a first mortgage or deed of trust on the farm. (b) The instruments under which the loan is made and security Provisions to be in. given therefor shall- corporated. (1) Provide for the repayment of the loan within an agreed period of not more than forty years from the making of the loan. (2) Provide for the payment of interest on the unpaid bal- ance of the loan at the rate of 3 per centum per annum . (3) Provide for the repayment of the unpaid balance of the loan, together with interest thereon, in installments in accord- ance with amortization schedules prescribed by the Secretary . (4) Be in such form and contain such covenants as the Secre- tary shall prescribe to secure the payment of the unpaid balance of the loan, together with interest thereon, to protect the security,