Page:United States Statutes at Large Volume 50 Part 1.djvu/734

 75 TH CONGRESS. 1ST SESSIO N-CH. 704 -A UGU ST 19, 1937 "Eighteenth . To accept conditional payments from borrowers for subsequent credit upon their indebtedness to the land bank ; and to allow interest on such payments. All con ditio nal paym ents so accepted shall be subject to such terms and conditions, not incon- sistent with the provisions of this paragraph and with any rules or regulations prescribed for its efficient execution by the Farm Credit Administration, as may be agreed upon at the time of their accep- tance . If a conditional payment is accepted for subsequent credit upon a first mortgage which is at the time or is thereafter pledged as collat eral security for an issue of farm- loan bonds, all r equire- ments, conditions, and limitations set forth in the seventh, eighth, and ninth paragraphs of section 22 of this Act, as amended, shall apply to such payment the same as though it were a present payment on the principal of the mortgage pledged as collateral security, and the land bank shall forthwith notify the farm loan registrar of its receipt of such paymen t and a ccount to him theref or. Every conditional pay- ment accepted by a land bank for subsequent credit upon indebted- ness of a borrower shall be credited upon such indebtedness as the borrower may from time to time direct in accordance with the terms and conditions upon which the payment has been accepted, and at the option of the bank may in any event be credited upon such indebt- edness as and when it natures if it is not otherwise paid by the bor- rower a t or before matur ity. If at any time after five years from the date on which a borrower's loan was made, the aggregate of the bor- rower's conditional payments accepted on account of his indebted- ness under such loan and not yet credited thereon equals or exceeds his total indebtedness under the loan, all unmatured indebtedness under such loan shall become due and payable at once, and the pay- ments so accepted shall forthwith be credited upon the borrower's indebtedness under the loan so far as may be necessary to pay it in full. Any balances of conditional payments remaining uncredited when the indebtedness on account of which they have been accepted has been paid in full shall be refunded to the borrower by the land bank ." SEC . 18 . The seventeenth paragraph of section 21 of the Federal Farm Loan Act, as amended (U . S . C ., 1934 edition, title 12, sec. 883), is further amended by adding at the end thereof the follow- ing : "The bond committee may appoint from among their number a subcommittee consisting of three members, to hold office for a period of one year or until their successors have been appointed, may from among their number fill any vacancies on the subcommit- tee and may dismiss at pleasure the members of the subcommittee or any of them. The su bcommit tee, if appoin ted, sh all hav e such authority to exercise the powers and to perform the functions of the bond committee as the bond committee may authorize and shall be subject to all provisions of law relating to the duties and expenses of t he bond commit tee. The committee shall select one of the mem- bers of the subcommittee to be chairman and one of the members of the subcommittee to be secretary of the subcommittee ." SEC. 19 . Paragraph "Tenth" of section 13 of the Federal Farm Loan Act, as amended (U . S. C ., 1934 edition, title 12, sec . 781), is further amended by striking out in the fourth sentence thereof the following : "made prior to the expiration of five years from May 12, 1933", and adding at the end of said paragraph the following : "The unexpended balances of the funds appropriated by the Fourth Defi- ciency Act, fiscal year 1933, approved June 16, 1933 (48 Stat . 279), the Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934 (48 Sta t . 10 60), the S econd D eficie ncy App ropriat ion Act , fiscal year 1935, approved August 12, 1935 (49 Stat . 592), the First. Deficiency Appropriation Act, fiscal year 1936, approved June 22, Credit allowed. Authority, etc. 12U.S.C.$781. 709 Acceptance of con- ditional payments from borrowers. Acceptance for sub- sequent credit. Application to pay ment. Refund of bathnces. La nd ba nk bo nd c ommit tee ; su bcom- mittee authorized. 12U.S.C.§883. Un expen ded ba l- ance s of designated funds, repayments, etc ., to constitute re- volving fund ; use of. 48Stat.279,1060:49 Stat. 592, 1635, 182a .