Page:United States Statutes at Large Volume 50 Part 1.djvu/549

 524 Prepayments . Agricultural compo- sitions and extensions ; repayment provisions. 47Stat.1470;48Stat. 925, 1289; 49 Stat. 942. 11U.S.C.°203; Su pp. II, ° 203. Equitable distribu- tion of loans . Avoidance of pro- ductio n expa nsion. 49 Stat.1148. 16 U.S. C., Supp. II, ° 590g. Appropriation authorized. Post, p. 762. Amount for admin- istrative expenses. Title II-Rehabilf- tation loans. Borrowers and terms. 7 5TH CONGRESS, 1ST SESSION-CH. 517-JULY 22, 1937 and to assure th at the farm w ill be maintai ned in repair, and waste and exhaustion of the farm prevented, and that such proper farming practices as the Secretary shall prescribe will be carried out. (5) Provide that the borrower shall pay taxes and assessments on the farm to the proper taxing authorities, and insure and pay for insuranc e on farm bui ldings. (6) Provide that upon the borrower's assigning, selling, or otherwise transferring the farm, or any interest therein, without the consent of t he Secretary, or upon defau lt in the per form- ance of, or upon any failure to comply with, any covenant or condition contained in such instruments, or upon involuntary tra nsfer or sale, the Secreta ry may declare the amount u npaid imm ediately due and payable, and that, with out the conse nt of the Secretary, no final payment shall be accepted, or release of the Secretary's interest be made, less than five 'ears after the makin g of the loan. (c) Except as provided in paragraph (6) of subsection (b), no instrument provided for in this section shall prohibit the prepayment of any sum due under it. (d) No pr ovision of sec tion 75, as a mended, of th e Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States", approved July 1, 1898 (U . S. C ., 1934 ed ., title 11, sec . 203 ; Supp . II, title 11, sec . 203), otherwise applicable in respect of any indebtedness incurred under this title by any beneficiary thereof, shall be applicable in respect of such indebtedness until such beneficiary has repaid at least 15 per centum thereof. EQUITABLE DISTRIBUTION OF LOANS SEC. 4 . In making loans under this title, the amount which is devoted to such purpose during any fiscal year shall be distributed equitably among the several States and Territories on the basis of farm population and the prevalence of tenancy, as determined by the Se cret ary. AVOIDANCE OF PRODUCTION EXPANSION SEC. 5 . In carrying out this title, the Secretary shall give due con- sideration to the desirability of avoiding the expansion of production for mar ket of basic commodities wh ere such expa nsion would de feat the policy of Congress as set forth in section 7 (a) (5) of the Soil Conservation and Domestic Allotment Act, as amended, and shall, so far a s pract icable, assis t benef iciari es of t he prog ram un der thi s title to become established upon lands now in cultivation. APPROPRIATION SEC. 6. To carry out th e provi sions o f this title, there is aut horized to be appropriated not to exceed $10,000,000 for the fiscal year ending June 30, 1938, not to exceed $25,000,000 for the fiscal year ending June 30, 1939, and not to exceed $50 ,000,000 for each fiscal ye ar thereafter. Not more than 5 per centum of the sums appropriated for any fiscal year in pursuance of this section shall be available for administrative expenses in carrying out this title during such fiscal year. TITL E II-R EHABILI TATION LOANS BORROWERS AND TERMS SEC. 21. (a) Out of the funds made available under section 23, the Secretary shall have power to make loans to eligible individuals for the purchase of livestock, farm equipment, supplies,. and for other