Page:United States Statutes at Large Volume 59 Part 1.djvu/646

 [59 STAT. lender not.of a class specified in subsection (d) may be guaranteed by the Administrator if he finds that it is in accord otherwise with the provisions of this title, as amended. "P URCHASE OR CONSTRUCTION OF HOMES Loans for homes, "SEC. 501. Any loan made to a veteran under this title, the pro- etc. ceeds of which are to be used for purchasing residential property or constructing a dwelling to be occupied as his home or for the purpose of making repairs, alterations, or improvements in property owned by him and occupied as his home, is automatically guaranteed if Requirements. made pursuant to the provisions of this title, including the following: "(1) That the proceeds of such loan will be used for payment of the property purchased or constructed or improved; "(2) That the contemplated terms of payment required in any mortgage to be given in part payment of the purchase price or the construction cost bear a proper relation to the veteran's pres- ent and anticipated income and expenses; and that the nature and condition of the property is such as to be suitable for dwell- ing purposes; and (3) That the price paid or to be paid by the veteran for such property or for the cost of construction, repairs, or alterations does not exceed the reasonable value thereof as determined by proper appraisal made by an appraiser designated by the Administrator. "PU RCHASE OF FARMS AND FARM EQUIPMENT Lfansoripment.d "SEc. 502. Any loan made to a veteran under this title, the proceeds Ante, p. 270. of which are to be used for purchasing any lands, buildings, livestock, equipment, machinery, supplies or implements, or for repairing, alter- ing, constructing or improving any land, equipment, or building, including the farmhouse, to be used in farming operations conducted by the veteran involving production in excess of his own needs, or for working capital requirements necessary for such operations, or to pur- chase stock in a cooperative association where the purchase of such stock is required by Federal statute as an incident to obtaining the loan, Requiements. is automatically guaranteed if made pursuant to the provisions of this title, including the following: "(1) That the proceeds of such loan will be used for any such purposes in connection with bona fide faring operations con- ducted by the applicant; "(2) That such property will be useful in and reasonably neces- sary for efficiently conducting such operations; "(3) That the ability and experience of the veteran, and the nature of the proposed farming operations to be conducted by him, are such that there is a reasonable likelihood that such opera- tions will be successful; and "(4) That the purchase price paid or to be paid by the veteran for such property does not exceed the reasonable value thereof as determined by proper appraisal made by an appraiser designated by the Administrator. Loans for business enterprises. 4"PURCHASE OF BUSINESS PBOPERTY "SEC. 503. Any loan made to a veteran under this title, the proceeds of which are to be used for the purpose of engaging in business or PUBLIC LAWS-CH. 588 -DEC. 28, 1945 628

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